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 Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Penske Automotive (PAG) earns a Zacks Rank #3 29 days from its next quarterly earnings release on July 26, 2023, and its Most Accurate Estimate comes in at $4.10 a share.
By taking the percentage difference between the $4.10 Most Accurate Estimate and the $3.95 Zacks Consensus Estimate, Penske Automotive has an Earnings ESP of 3.75%.
PAG is part of a big group of Retail-Wholesale stocks that boast a positive ESP, and investors may want to take a look at Urban Outfitters (URBN) as well.
Slated to report earnings on August 22, 2023, Urban Outfitters holds a #1 (Strong Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.86 a share 56 days from its next quarterly update.
The Zacks Consensus Estimate for Urban Outfitters is $0.85, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.69%.
PAG and URBN'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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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
