How to Find Strong Consumer Discretionary Stocks Slated for Positive Earnings Surprises

By DailyBubble On May 2, 2024 13 0

Quarterly financial reports are crucial on Wall Street as they provide investors with insight into a company’s performance and future prospects. One of the key metrics to consider in these reports is earnings, which can have a significant impact on stock prices.

When evaluating earnings results, it’s important to compare how a company performs against expectations. This can be particularly important in the short term, as exceeding or falling short of bottom line expectations can influence stock prices. Investors may want to take advantage of these earnings surprises.

The Zacks Earnings ESP, or Expected Surprise Prediction, is a tool that aims to predict how a company’s earnings will compare to analyst estimates before the report is released. By comparing the Most Accurate Estimate to the Zacks Consensus Estimate, the ESP calculates the percentage difference between the two.

One stock to watch is Sony (SONY), which currently holds a Zacks Rank #3 and is 13 days away from its next quarterly earnings release. The Most Accurate Estimate for Sony is $0.85 per share, resulting in an Earnings ESP of 2%.

Another stock to consider is Hasbro (HAS), which is set to report earnings on August 1, 2024. Hasbro currently has a Zacks Rank #2 (Buy) and a Most Accurate Estimate of $0.75 per share, with an Earnings ESP of 1.89%.

Both Sony and Hasbro have positive Earnings ESP figures, indicating they may surpass earnings expectations in their upcoming reports.

Investors can use the Zacks Earnings ESP Filter to identify stocks with a high probability of surprising positively or negatively before their earnings reports are released, enabling profitable trading during earnings season.

For more stock recommendations from Zacks Investment Research, download the 7 Best Stocks for the Next 30 Days.

Sony Corporation (SONY) and Hasbro, Inc. (HAS) offer free stock analysis reports. This article can also be found on Zacks.com. Zacks Investment Research is a reliable source for investment insights.