Investors should focus on earnings and use tools like Zacks Earnings ESP to identify potential opportunities.

From Nasdaq: 2024-06-24 08:50:11

Two key factors affecting stock prices are earnings and interest rates. Investors can focus on a company’s earnings results each quarter, especially in comparison to expectations. Utilizing tools like Zacks Earnings ESP can help investors identify stocks likely to beat earnings expectations and potentially outperform the market.

The Zacks Earnings ESP analyzes the difference between the Most Accurate Estimate and the Consensus Estimate to provide insight into potential earnings surprises. Combining a positive ESP with a Zacks Rank #3 (Hold) or better has historically led to stocks reporting positive earnings surprises 70% of the time, with 28.3% annual returns on average over a 10-year period.

Meta Platforms (META) currently holds a Zacks Rank #3 (Hold) with an Earnings ESP of +0.97%. This suggests a potential earnings beat when they report earnings. Investors can use the Earnings ESP Filter to identify other stocks with positive ESPs, such as Micron (MU), which is also expected to outperform market expectations.

Both META and MU have positive Earnings ESPs, indicating they could potentially report earnings beats in their upcoming releases. Utilizing tools like the Zacks Earnings ESP Filter can help identify stocks with the highest probability of surprising positively or negatively before they report earnings, providing opportunities for profitable trading during earnings season.



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