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Why Investors Need to Take Advantage of These 2 Retail and Wholesale Stocks Now
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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider TJX?
The final step today is to look at a stock that meets our ESP qualifications. TJX (TJX - Free Report) earns a #3 (Hold) 19 days from its next quarterly earnings release on February 28, 2024, and its Most Accurate Estimate comes in at $1.12 a share.
By taking the percentage difference between the $1.12 Most Accurate Estimate and the $1.11 Zacks Consensus Estimate, TJX has an Earnings ESP of +0.54%. Investors should also know that TJX is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
TJX is just one of a large group of Retail and Wholesale stocks with a positive ESP figure. Walgreens Boots Alliance (WBA - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on March 26, 2024, Walgreens Boots Alliance holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.85 a share 46 days from its next quarterly update.
Walgreens Boots Alliance's Earnings ESP figure currently stands at +0.64% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.85.
TJX and WBA's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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Why Investors Need to Take Advantage of These 2 Retail and Wholesale Stocks Now
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider TJX?
The final step today is to look at a stock that meets our ESP qualifications. TJX (TJX - Free Report) earns a #3 (Hold) 19 days from its next quarterly earnings release on February 28, 2024, and its Most Accurate Estimate comes in at $1.12 a share.
By taking the percentage difference between the $1.12 Most Accurate Estimate and the $1.11 Zacks Consensus Estimate, TJX has an Earnings ESP of +0.54%. Investors should also know that TJX is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
TJX is just one of a large group of Retail and Wholesale stocks with a positive ESP figure. Walgreens Boots Alliance (WBA - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on March 26, 2024, Walgreens Boots Alliance holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.85 a share 46 days from its next quarterly update.
Walgreens Boots Alliance's Earnings ESP figure currently stands at +0.64% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.85.
TJX and WBA's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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 >>