Advertisement
UK markets closed

  • FTSE 100

    8,139.83
    +60.97 (+0.75%)
     

  • FTSE 250

    19,824.16
    +222.18 (+1.13%)
     

  • AIM

    755.28
    +2.16 (+0.29%)
     

  • GBP/EUR

    1.1679
    +0.0022 (+0.19%)
     

  • GBP/USD

    1.2491
    -0.0020 (-0.16%)
     

  • Bitcoin GBP

    51,226.87
    -514.73 (-0.99%)
     

  • CMC Crypto 200

    1,332.87
    -63.66 (-4.56%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • HANG SENG

    17,651.15
    +366.61 (+2.12%)
     

  • DAX

    18,161.01
    +243.73 (+1.36%)
     

  • CAC 40

    8,088.24
    +71.59 (+0.89%)
     
PROPERTY:

9 luxury homes to consider if money is no object

Ever thought about what a multimillion pound budget would buy you?

Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Retail-Wholesale Names

Zacks Equity Research
·2-min read

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

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.

ADVERTISEMENT

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. Alibaba (BABA) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.08 a share, just eight days from its upcoming earnings release on May 26, 2022.

By taking the percentage difference between the $1.08 Most Accurate Estimate and the $1.06 Zacks Consensus Estimate, Alibaba has an Earnings ESP of 2.21%.

BABA is part of a big group of Retail-Wholesale stocks that boast a positive ESP, and investors may want to take a look at Kroger (KR) as well.

Kroger is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on June 16, 2022. KR's Most Accurate Estimate sits at $1.31 a share 29 days from its next earnings release.

Kroger's Earnings ESP figure currently stands at 2.95% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.27.

BABA and KR'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
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
The Kroger Co. (KR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.