How to Find Strong Computer and Technology Stocks Slated for Positive Earnings Surprises
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.
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. Generac Holdings (GNRC) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $1.52 a share, just 30 days from its upcoming earnings release on August 7, 2024.
Generac Holdings’ Earnings ESP sits at 23.33%, which, as explained above, is calculated by taking the percentage difference between the $1.52 Most Accurate Estimate and the Zacks Consensus Estimate of $1.23.
GNRC is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Nutanix (NTNX).
Nutanix, which is readying to report earnings on August 29, 2024, sits at a Zacks Rank #3 (Hold) right now. It’s Most Accurate Estimate is currently $0.21 a share, and NTNX is 52 days out from its next earnings report.
The Zacks Consensus Estimate for Nutanix is $0.19, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 7.9%.
GNRC and NTNX’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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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
Nutanix (NTNX) : Free Stock Analysis Report
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