Why Investors Need to Take Advantage of These 2 Basic Materials Stocks Now
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.
The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.
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. Carpenter Technology (CRS) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $1.52 a share, just six days from its upcoming earnings release on July 25, 2024.
Carpenter Technology's Earnings ESP sits at 6.45%, which, as explained above, is calculated by taking the percentage difference between the $1.52 Most Accurate Estimate and the Zacks Consensus Estimate of $1.43.
CRS is one of just a large database of Basic Materials stocks with positive ESPs. Another solid-looking stock is Pan American Silver (PAAS).
Slated to report earnings on August 7, 2024, Pan American Silver holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.16 a share 19 days from its next quarterly update.
The Zacks Consensus Estimate for Pan American Silver is $0.12, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 26.57%.
CRS and PAAS' 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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Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Pan American Silver Corp. (PAAS) : Free Stock Analysis Report