Yahoo Finance Why Investors Need to Take Advantage of These 2 Consumer Discretionary 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.
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.
The final step today is to look at a stock that meets our ESP qualifications. Royal Caribbean (RCL) earns a Zacks Rank #3 one day from its next quarterly earnings release on May 4, 2023, and its Most Accurate Estimate comes in at -$0.70 a share.
Royal Caribbean's Earnings ESP sits at 1.64%, which, as explained above, is calculated by taking the percentage difference between the -$0.70 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.71.
RCL is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. Playa Hotels & Resorts (PLYA) is another qualifying stock you may want to consider.
Playa Hotels & Resorts is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on May 4, 2023. PLYA's Most Accurate Estimate sits at $0.43 a share one day from its next earnings release.
For Playa Hotels & Resorts, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.31 is 40.22%.
Because both stocks hold a positive Earnings ESP, RCL and PLYA 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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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report
