Yahoo Finance How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.
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.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Perion Network (PERI) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.79 a share, just 14 days from its upcoming earnings release on February 8, 2023.
Perion Network's Earnings ESP sits at 13.4%, which, as explained above, is calculated by taking the percentage difference between the $0.79 Most Accurate Estimate and the Zacks Consensus Estimate of $0.70.
PERI is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is NetApp (NTAP).
Slated to report earnings on February 22, 2023, NetApp holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.34 a share 28 days from its next quarterly update.
The Zacks Consensus Estimate for NetApp is $1.31, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 2.03%.
PERI and NTAP's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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Perion Network Ltd (PERI) : Free Stock Analysis Report
NetApp, Inc. (NTAP) : Free Stock Analysis Report
