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Zacks.com featured highlights include Driven, Carlisle Companies, Avis, Sociedad Quimica y Minera, and Tenaris

For Immediate Release

Chicago, IL – June 3, 2022 – Stocks in this week’s article are Driven Brands Holdings DRVN, Carlisle Companies CSL, Avis Budget Group CAR, Sociedad Quimica y Minera SQM, and Tenaris TS.

5 Stocks Likely to Beat Earnings Estimates

It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and tap stocks that are high-quality in nature.

Why Is a Positive Earnings Surprise So Important?

Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn't tell you if earnings growth has been exhibiting a decelerating trend.

Also, seasonal fluctuations come into play sometimes. If a company's Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.

Meanwhile, after much brainstorming and analysis of companies' financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company's guidance when deriving an earnings estimate.

Thus, outperforming that estimate is almost equivalent to beating the company's own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.

How to Find Stocks That Can Beat?

Now, finding stocks that have the potential to beat on the bottom line may be investors' dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.

An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company's ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earning beat in its next release.

A handful of criteria has narrowed down the universe from over 7,700 stocks to five.

Here are all five stocks:

Driven Brands Holdings : It is an automotive services company principally in North America. The stock carries a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

The average earnings surprise of DRVN for the past four quarters is 30.07%.

Carlisle Companies : The Zacks Rank #1 Carlisle Companies is a diversified, global portfolio of niche brands and businesses with highly engineered and high-margin products.

The average earnings surprise of CSL for the past four quarters is 23.01%.

Avis Budget Group : The Zacks Rank #1 company operates as a leading vehicle rental operator in North America, Europe and Australasia, with an average rental fleet of nearly 650,000 vehicles.

The average earnings surprise of CAR for the past four quarters is 102.13%.

Sociedad Quimica y Minera : The Zacks Rank #1 company produces fertilizer and iodine and manufactures industrial chemicals and iodine-derivative products.

The average earnings surprise of SQM for the past four quarters is 28.19%.

Tenaris : This is a Zacks Rank #1 company organized in Luxembourg, is a leading manufacturer and supplier of seamless steel pipe products and associated services to the oil and gas, energy and other industries.

The average earnings surprise of TS for the past four quarters is 62.85%.

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The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1932811/5-top-stocks-likely-to-beat-earnings-estimates

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
 
Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report
 
Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
 
Tenaris S.A. (TS) : Free Stock Analysis Report
 
Driven Brands Holdings Inc. (DRVN) : Free Stock Analysis Report
 
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