Yahoo Finance Want Better Returns? Don't Ignore These 2 Finance Stocks Set to Beat Earnings
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
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.
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. American International Group (AIG) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $1.26 a share 13 days away from its upcoming earnings release on February 15, 2023.
By taking the percentage difference between the $1.26 Most Accurate Estimate and the $1.19 Zacks Consensus Estimate, American International Group has an Earnings ESP of 5.73%.
AIG is just one of a large group of Finance stocks with a positive ESP figure. Mid-America Apartment Communities (MAA) is another qualifying stock you may want to consider.
Mid-America Apartment Communities is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 26, 2023. MAA's Most Accurate Estimate sits at $2.32 a share 83 days from its next earnings release.
The Zacks Consensus Estimate for Mid-America Apartment Communities is $2.25, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 3.24%.
Because both stocks hold a positive Earnings ESP, AIG and MAA could potentially post earnings beats in their next reports.
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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American International Group, Inc. (AIG) : Free Stock Analysis Report
Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report
