Can Exact Sciences (EXAS) Keep the Earnings Streak Alive This Quarter?

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Exact Sciences Corporation EXAS, a firm in the Biomedical and Genetics industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, EXAS has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, EXAS expected to post loss of 41 cents per share, while it actually produced loss of 32 cents per share, a beat of 21.9%. Meanwhile, for the most recent quarter, the company looked to deliver loss of 37 cents per share, when it actually delivered loss of 27 cents per share, representing 27% positive surprise.

Exact Sciences Corporation Price and EPS Surprise

Exact Sciences Corporation Price and EPS Surprise | Exact Sciences Corporation Quote

Thanks in part to this history, recent estimates have been moving higher for Exact Sciences. In fact, the Earnings ESP for EXAS is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for EXAS, as the firm currently has a Zacks Earnings ESP of +29.79%. So another beat could be around the corner.

This is particularly true when you consider that EXAS has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that EXAS could see another beat at its next report, especially if recent trends are any guide.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

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
 
Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research