These 2 Industrial Products 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.
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. Emerson Electric (EMR) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.45 a share, just 29 days from its upcoming earnings release on August 7, 2024.
By taking the percentage difference between the $1.45 Most Accurate Estimate and the $1.42 Zacks Consensus Estimate, Emerson Electric has an Earnings ESP of 2.23%.
EMR is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Stanley Black & Decker (SWK) as well.
Stanley Black & Decker, which is readying to report earnings on July 30, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.85 a share, and SWK is 21 days out from its next earnings report.
Stanley Black & Decker's Earnings ESP figure currently stands at 0.56% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.84.
EMR and SWK'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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Emerson Electric Co. (EMR) : Free Stock Analysis Report
Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
