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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Computer and Technology Names

·2-min read

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 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 last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Atlassian (TEAM) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.27 a share one day away from its upcoming earnings release on August 4, 2022.

TEAM has an Earnings ESP figure of 1.92%, which, as explained above, is calculated by taking the percentage difference between the $0.27 Most Accurate Estimate and the Zacks Consensus Estimate of $0.26.

TEAM is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is 3D Systems (DDD).

3D Systems is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 8, 2022. DDD's Most Accurate Estimate sits at $0.02 a share five days from its next earnings release.

3D Systems' Earnings ESP figure currently stands at 900% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.

TEAM and DDD'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
 
Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
 
3D Systems Corporation (DDD) : Free Stock Analysis Report
 
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Zacks Investment Research