How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings
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.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
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 final step today is to look at a stock that meets our ESP qualifications. Roper Technologies (ROP) earns a Zacks Rank #3 nine days from its next quarterly earnings release on July 24, 2024, and its Most Accurate Estimate comes in at $4.53 a share.
By taking the percentage difference between the $4.53 Most Accurate Estimate and the $4.46 Zacks Consensus Estimate, Roper Technologies has an Earnings ESP of 1.68%.
ROP is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at TSMC (TSM) as well.
TSMC, which is readying to report earnings on July 18, 2024, sits at a Zacks Rank #2 (Buy) right now. It’s Most Accurate Estimate is currently $1.42 a share, and TSM is three days out from its next earnings report.
TSMC’s Earnings ESP figure currently stands at 4.03% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.37.
ROP and TSM’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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Roper Technologies, Inc. (ROP) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
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