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.
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. Arista Networks (ANET) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $2.10 a share, just three days from its upcoming earnings release on November 7, 2024.
Arista Networks’ Earnings ESP sits at 0.72%, which, as explained above, is calculated by taking the percentage difference between the $2.10 Most Accurate Estimate and the Zacks Consensus Estimate of $2.09.
ANET is just one of a large group of Computer and Technology stocks with a positive ESP figure. Apple (AAPL) is another qualifying stock you may want to consider.
Apple is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on February 6, 2025. AAPL’s Most Accurate Estimate sits at $2.38 a share 94 days from its next earnings release.
For Apple, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.36 is 0.91%.
ANET and AAPL’s positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
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