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

Quarterly financial reports are essential on Wall Street as they provide investors with insights into a company’s performance and future prospects. Among the various metrics to consider, earnings is particularly crucial.

Earnings results are important, but how a company fares compared to expectations can have a significant impact on stock prices, especially in the short term. Investors may want to take advantage of earnings surprises.

The Zacks Earnings ESP (Expected Surprise Prediction) focuses on finding earnings surprises by analyzing recent analyst revisions. By comparing the Most Accurate Estimate to the Zacks Consensus Estimate, the ESP calculates the Expected Surprise Prediction.

One stock that meets the ESP qualifications is Ralph Lauren (RL), which holds a Zacks Rank #3 and is set to report earnings on May 23, 2024, with a Most Accurate Estimate of $1.66 per share. With an Earnings ESP of 0.73%, RL is among the Consumer Discretionary stocks with a positive ESP.

Another stock to consider is AMC Entertainment (AMC), which is scheduled to report earnings on August 13, 2024. With a Zacks Rank #2 (Buy) and a Most Accurate Estimate of -$0.23 per share, AMC’s Earnings ESP is currently at 25.2%.

Both RL and AMC have a positive Earnings ESP, indicating the potential for earnings beats in their upcoming reports.

For investors looking to make informed decisions before earnings reports, the Zacks Earnings ESP Filter can help identify stocks with a high probability of surprising positively or negatively. Stay ahead of the game with profitable trading during earnings season.

For more insights and recommendations from Zacks Investment Research, consider downloading the 7 Best Stocks for the Next 30 Days.

Invest wisely and stay informed with Zacks Investment Research.