Yahoo Finance Why Investors Need to Take Advantage of These 2 Consumer Discretionary Stocks Now
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
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. Royal Caribbean (RCL) holds a Zacks Rank #1 at the moment and its Most Accurate Estimate comes in at $1.36 a share 30 days away from its upcoming earnings release on May 2, 2024.
Royal Caribbean's Earnings ESP sits at 4.76%, which, as explained above, is calculated by taking the percentage difference between the $1.36 Most Accurate Estimate and the Zacks Consensus Estimate of $1.30.
RCL is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. Wynn Resorts (WYNN) is another qualifying stock you may want to consider.
Wynn Resorts is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on May 14, 2024. WYNN's Most Accurate Estimate sits at $1.45 a share 42 days from its next earnings release.
For Wynn Resorts, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.40 is 4.23%.
RCL and WYNN'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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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
