Why Investors Need to Take Advantage of These 2 Retail-Wholesale Stocks Now
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Urban Outfitters (URBN) earns a Zacks Rank #3 24 days from its next quarterly earnings release on November 20, 2023, and its Most Accurate Estimate comes in at $0.81 a share.
By taking the percentage difference between the $0.81 Most Accurate Estimate and the $0.80 Zacks Consensus Estimate, Urban Outfitters has an Earnings ESP of 0.69%.
URBN is one of just a large database of Retail-Wholesale stocks with positive ESPs. Another solid-looking stock is Cava Group (CAVA).
Slated to report earnings on November 7, 2023, Cava Group holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0 a share 11 days from its next quarterly update.
The Zacks Consensus Estimate for Cava Group is -$0.01, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 100%.
URBN and CAVA's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
CAVA Group, Inc. (CAVA) : Free Stock Analysis Report
