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How to Boost Your Portfolio with Top Finance Stocks Set to Beat Earnings

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.

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 Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.

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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. Postal Realty Trust (PSTL) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.25 a share, just 14 days from its upcoming earnings release on May 2, 2023.

Postal Realty Trust's Earnings ESP sits at 2.08%, which, as explained above, is calculated by taking the percentage difference between the $0.25 Most Accurate Estimate and the Zacks Consensus Estimate of $0.24.

PSTL is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is AllianceBernstein (AB).

AllianceBernstein, which is readying to report earnings on April 26, 2023, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $0.88 a share, and AB is eight days out from its next earnings report.

The Zacks Consensus Estimate for AllianceBernstein is $0.74, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 18.92%.

PSTL and AB'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 >>

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

Postal Realty Trust, Inc. (PSTL) : Free Stock Analysis Report

AllianceBernstein Holding L.P. (AB) : Free Stock Analysis Report

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Zacks Investment Research