Yahoo Finance Why Investors Need to Take Advantage of These 2 Basic Materials Stocks Now
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.
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 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.
The final step today is to look at a stock that meets our ESP qualifications. Lithium Americas Corp. (LAC) earns a Zacks Rank #3 21 days from its next quarterly earnings release on March 15, 2023, and its Most Accurate Estimate comes in at -$0.13 a share.
LAC has an Earnings ESP figure of 48.68%, which, as explained above, is calculated by taking the percentage difference between the -$0.13 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.25.
LAC is part of a big group of Basic Materials stocks that boast a positive ESP, and investors may want to take a look at LyondellBasell (LYB) as well.
LyondellBasell, which is readying to report earnings on May 5, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $2.02 a share, and LYB is 72 days out from its next earnings report.
For LyondellBasell, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.99 is 1.72%.
LAC and LYB'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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Lithium Americas Corp. (LAC) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
