Yahoo Finance How to Find Strong Medical Stocks Slated for Positive Earnings Surprises
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.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these 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. Elevance Health (ELV) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $10.01 a share, just 21 days from its upcoming earnings release on July 17, 2024.
ELV has an Earnings ESP figure of 0.06%, which, as explained above, is calculated by taking the percentage difference between the $10.01 Most Accurate Estimate and the Zacks Consensus Estimate of $10.
ELV is just one of a large group of Medical stocks with a positive ESP figure. Medtronic (MDT) is another qualifying stock you may want to consider.
Medtronic is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 27, 2024. MDT's Most Accurate Estimate sits at $1.20 a share 62 days from its next earnings release.
For Medtronic, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.20 is 0.23%.
ELV and MDT'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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Elevance Health, Inc. (ELV) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
