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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Finance Names

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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

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 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. Synchrony (SYF) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $1.55 a share, just 27 days from its upcoming earnings release on July 19, 2022.

By taking the percentage difference between the $1.55 Most Accurate Estimate and the $1.49 Zacks Consensus Estimate, Synchrony has an Earnings ESP of 4.33%.

SYF is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at SVB Financial (SIVB) as well.

Slated to report earnings on July 28, 2022, SVB Financial holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $7.91 a share 36 days from its next quarterly update.

SVB Financial's Earnings ESP figure currently stands at 0.66% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $7.86.

SYF and SIVB'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
 
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