These 2 Finance Stocks Could Beat Earnings: Why They Should Be on Your Radar
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Virtu Financial (VIRT) earns a Zacks Rank #2 eight days from its next quarterly earnings release on July 18, 2024, and its Most Accurate Estimate comes in at $0.61 a share.
VIRT has an Earnings ESP figure of 0.55%, which, as explained above, is calculated by taking the percentage difference between the $0.61 Most Accurate Estimate and the Zacks Consensus Estimate of $0.60.
VIRT is just one of a large group of Finance stocks with a positive ESP figure. Simon Property (SPG) is another qualifying stock you may want to consider.
Slated to report earnings on August 7, 2024, Simon Property holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.93 a share 28 days from its next quarterly update.
The Zacks Consensus Estimate for Simon Property is $2.93, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.11%.
VIRT and SPG'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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Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report
Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
