Yahoo Finance How to Boost Your Portfolio with Top Finance 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.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
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.
The final step today is to look at a stock that meets our ESP qualifications. Skyward Specialty Insurance (SKWD) earns a Zacks Rank #2 one day from its next quarterly earnings release on May 1, 2024, and its Most Accurate Estimate comes in at $0.71 a share.
By taking the percentage difference between the $0.71 Most Accurate Estimate and the $0.66 Zacks Consensus Estimate, Skyward Specialty Insurance has an Earnings ESP of 7.99%.
SKWD is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is Cincinnati Financial (CINF).
Cincinnati Financial, which is readying to report earnings on July 25, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.12 a share, and CINF is 86 days out from its next earnings report.
For Cincinnati Financial, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.07 is 4.25%.
SKWD and CINF'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 >>
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Skyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis Report
Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report
