雅虎香港財經 These 2 Medical 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 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.
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Illumina (ILMN) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $0.89 a share 15 days away from its upcoming earnings release on August 6, 2024.
ILMN has an Earnings ESP figure of 279.87%, which, as explained above, is calculated by taking the percentage difference between the $0.89 Most Accurate Estimate and the Zacks Consensus Estimate of $0.23.
ILMN is just one of a large group of Medical stocks with a positive ESP figure. Novartis (NVS) is another qualifying stock you may want to consider.
Slated to report earnings on October 22, 2024, Novartis holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.95 a share 92 days from its next quarterly update.
The Zacks Consensus Estimate for Novartis is $1.88, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 3.6%.
ILMN and NVS' 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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Illumina, Inc. (ILMN) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
