Yahoo Finance How to Find Strong Transportation 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.
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. C.H. Robinson Worldwide (CHRW) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.99 a share, just 20 days from its upcoming earnings release on July 31, 2024.
C.H. Robinson Worldwide's Earnings ESP sits at 11.3%, which, as explained above, is calculated by taking the percentage difference between the $0.99 Most Accurate Estimate and the Zacks Consensus Estimate of $0.89.
CHRW is part of a big group of Transportation stocks that boast a positive ESP, and investors may want to take a look at Alaska Air Group (ALK) as well.
Alaska Air Group, which is readying to report earnings on July 23, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.38 a share, and ALK is 12 days out from its next earnings report.
Alaska Air Group's Earnings ESP figure currently stands at 0.69% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.36.
CHRW and ALK's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
