雅虎香港財經 Want Better Returns? Don't Ignore These 2 Transportation Stocks Set to Beat Earnings
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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, 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.
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. Alaska Air Group (ALK) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.98 a share, just 30 days from its upcoming earnings release on October 17, 2024.
By taking the percentage difference between the $1.98 Most Accurate Estimate and the $1.72 Zacks Consensus Estimate, Alaska Air Group has an Earnings ESP of 14.84%.
ALK is just one of a large group of Transportation stocks with a positive ESP figure. United Airlines (UAL) is another qualifying stock you may want to consider.
United Airlines, which is readying to report earnings on October 15, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $3.25 a share, and UAL is 28 days out from its next earnings report.
For United Airlines, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $3.05 is 6.73%.
ALK and UAL'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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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
