Summary: Using Zacks' Earnings ESP filter to identify retail stocks with potential for earnings surprises.

From Nasdaq Corporate Solutions: 2024-06-17 08:50:09

Investors closely monitor a company’s quarterly earnings report, with a focus on earnings. Positive earnings surprises can lead to higher returns, while falling short can have negative effects. Utilizing tools like Zacks’ Earnings ESP filter can help identify potential winners in the stock market.

The Zacks Earnings ESP, or Expected Surprise Prediction, uses analyst revisions to predict earnings surprises. By comparing the Most Accurate Estimate to the Consensus Estimate, the ESP metric aims to find companies likely to beat bottom-line consensus estimates and potentially see stock price increases.

Stocks with a Zacks Rank #3 (Hold) or better and a positive earnings ESP have historically shown a 70% success rate in beating earnings estimates, with an average annual return of 28.3% over 10 years. Strong Buy stocks have the highest outperformance potential in the market.

Carvana (CVNA) and Alibaba (BABA) are retail stocks with positive Earnings ESP figures, indicating the potential for beating earnings estimates in their upcoming reports. Utilizing the Zacks Earnings ESP filter can help investors identify stocks with high probability of positive earnings surprises.

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Read more at Nasdaq Corporate Solutions: How to Boost Your Portfolio with Top Retail and Wholesale Stocks Set to Beat Earnings