Yahoo Finance These 2 Medical Stocks Could Beat Earnings: Why They Should Be on Your Radar
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these 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. Illumina (ILMN) earns a Zacks Rank #3 13 days from its next quarterly earnings release on May 2, 2024, and its Most Accurate Estimate comes in at $0.04 a share.
By taking the percentage difference between the $0.04 Most Accurate Estimate and the $0.03 Zacks Consensus Estimate, Illumina has an Earnings ESP of 50%.
ILMN is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Humana (HUM) as well.
Slated to report earnings on April 24, 2024, Humana holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $6.02 a share five days from its next quarterly update.
The Zacks Consensus Estimate for Humana is $6.02, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.07%.
Because both stocks hold a positive Earnings ESP, ILMN and HUM could potentially post earnings beats in their next reports.
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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Illumina, Inc. (ILMN) : Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
