UK Markets open in 18 mins
  • NIKKEI 225

    26,739.03
    +336.19 (+1.27%)
     
  • HANG SENG

    20,717.24
    +596.56 (+2.96%)
     
  • CRUDE OIL

    110.35
    +0.46 (+0.42%)
     
  • GOLD FUTURES

    1,845.10
    +3.90 (+0.21%)
     
  • DOW

    31,261.90
    +8.77 (+0.03%)
     
  • BTC-GBP

    23,289.09
    -1,041.92 (-4.28%)
     
  • CMC Crypto 200

    650.34
    -23.03 (-3.42%)
     
  • Nasdaq

    11,354.62
    -33.88 (-0.30%)
     
  • ^FTAS

    4,083.84
    +44.90 (+1.11%)
     

Why Earnings Season Could Be Great for Sensata Technologies (ST)

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Investors are always looking for stocks that are poised to beat at earnings season and Sensata Technologies Holding plc ST, may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Sensata Technologies is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ST in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at 82 cents per share for ST, compared to a broader Zacks Consensus Estimate of 81 cents per share. This suggests that analysts have very recently bumped up their estimates for ST, giving the stock a Zacks Earnings ESP of +1.86% heading into earnings season.

Sensata Technologies Holding N.V. Price and EPS Surprise

Sensata Technologies Holding N.V. Price and EPS Surprise
Sensata Technologies Holding N.V. Price and EPS Surprise

Sensata Technologies Holding N.V. price-eps-surprise | Sensata Technologies Holding N.V. Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that ST has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Sensata Technologies, and that a beat might be in the cards for the upcoming report.


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

Sensata Technologies Holding N.V. (ST) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting