Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
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.
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. Guardant Health (GH) earns a Zacks Rank #3 30 days from its next quarterly earnings release on February 27, 2025, and its Most Accurate Estimate comes in at -$0.48 a share.
Guardant Health's Earnings ESP sits at 4.04%, which, as explained above, is calculated by taking the percentage difference between the -$0.48 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.50.
GH is just one of a large group of Medical stocks with a positive ESP figure. Exact Sciences (EXAS) is another qualifying stock you may want to consider.
Exact Sciences is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on February 19, 2025. EXAS' Most Accurate Estimate sits at -$0.31 a share 22 days from its next earnings release.
Exact Sciences' Earnings ESP figure currently stands at 1.59% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of -$0.32.
Because both stocks hold a positive Earnings ESP, GH and EXAS could potentially post earnings beats in their next reports.
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Guardant Health, Inc. (GH) : Free Stock Analysis Report
Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。