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Zacks.com featured highlights include: Ionis Pharmaceuticals, Aphria, Tabula Rasa Healthcare, InterDigital and Huron Consulting Group

·5 min read

For Immediate Release

Chicago, IL – April 22, 2020 – Stocks in this week’s article are Ionis Pharmaceuticals Inc. IONS, Aphria Inc. APHA, Tabula Rasa Healthcare Inc. TRHC, InterDigital Inc. IDCC and Huron Consulting Group Inc. HURN.

Grab 5 Stocks with Strong Earnings Beat Prospects

The earnings season is underway and all attention will now be on upbeat releases for some respite from the adverse impact of coronavirus. This means estimate-beating stocks will be the most important ones from the investment point of view.

Note that investors are always in the hunt for estimate-beating stocks before an earnings release. This is because investors always try to place themselves ahead of time and look to play stocks that are rich in quality and have high chances of beating earnings estimates.

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 it has been decelerating.

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

On the other hand, after a whole lot of research and analysis on a company’s financials and initiatives, Wall Street analysts project its earnings. They also take a company’s guidance into consideration 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 Locate Potential Outperformers?

Now, finding stocks that have the potential to beat on the bottom line is a dream that investors chase but might not always come true. One way of fulfilling it is by looking at the earnings surprise history of a company.

An impressive track in this regard generally acts as a driver in sending a stock higher. It indicates the company’s ability to exceed estimates. And investors generally believe that the company will have the same trick up its sleeve to deliver yet another earning beat in its upcoming release.

For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/881691/grab-5-top-stocks-with-strong-earnings-beat-prospects

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Contact: Jim Giaquinto

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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.

 

 

 

            


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Huron Consulting Group Inc. (HURN) : Free Stock Analysis Report
 
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
 
Ionis Pharmaceuticals, Inc. (IONS) : Free Stock Analysis Report
 
Tabula Rasa Healthcare Inc. (TRHC) : Free Stock Analysis Report
 
Aphria Inc. (APHA) : Free Stock Analysis Report
 
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