Yahoo Finance Want Better Returns? Don't Ignore These 2 Computer and Technology Stocks Set to Beat Earnings
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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 Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks 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. Wesco International (WCC) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $3.78 a share, just 22 days from its upcoming earnings release on May 4, 2023.
WCC has an Earnings ESP figure of 5.93%, which, as explained above, is calculated by taking the percentage difference between the $3.78 Most Accurate Estimate and the Zacks Consensus Estimate of $3.57.
WCC is just one of a large group of Computer and Technology stocks with a positive ESP figure. CrowdStrike Holdings (CRWD) is another qualifying stock you may want to consider.
CrowdStrike Holdings is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on June 1, 2023. CRWD's Most Accurate Estimate sits at $0.50 a share 50 days from its next earnings release.
CrowdStrike Holdings' Earnings ESP figure currently stands at 1.4% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.49.
WCC and CRWD'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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WESCO International, Inc. (WCC) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
