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5 Strong Buy Stocks Poised to Beat Earnings Estimates Soon
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As we head into the heart of Q3 earnings season, investors will want to maximize their profit potential by targeting companies that are likely to beat earnings estimates. While share price movements are no guarantee, stocks that surpass estimates are more likely to move higher in the days following their reports, and that post-earnings momentum can continue for several weeks.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
With that said, here are a Zacks Rank #1 (Strong Buy) stocks that are popping up on our Earnings ESP Screener right now:
Potlach is an integrated forest products company with substantial timber resources. The company has surpassed the Zacks Consensus Estimate in each of the trailing three quarters, and the stock is now up nearly 26% year-to-date. Currently, PCH has an Earnings ESP of 1.43%. Potlach will report its third-quarter results after the market closes on October 24, and investors will be interested in seeing if this stock—which just hit a new 52-week high—can surge even higher.
Viper Energy is engaged in owning, acquiring, and exploiting oil and natural gas properties primarily in North America. Viper has met or surpassed the Zacks Consensus Estimate in 11 straight quarters, and shares have surged more than 20% so far in 2014. As of right now, VNOM has an Earnings ESP of 3.37%. The company is scheduled to release its third-quarter results after the closing bell on October 24. Shares are near their 52-week high, but the stock might be able to break higher if it can impress investors again.
Greenbrier is a leading supplier of transportation equipment and services to the railroad and related industries. In the past two quarters, the company has smashed the Zacks Consensus Estimate by more than 25%. It’s also worth noting that Greenbrier belongs to our “Transportation - Equipment and Leasing” group, which currently sits in the top 9% of the Zacks Industry Rank. Heading into its report on October 27, Greenbrier is sporting an Earnings ESP of 2.35%. This is another stock near its 52-week high, but shares could find a new range on the back of another solid report.
Vishay Intertechnology is a global manufacturer and supplier of discrete semiconductors. The company has a broad portfolio of unique solutions that are tailored to the Internet of Things. On the back of strong global demand for such solutions, VSH has moved nearly 29% higher this year. Currently, the company has an Earnings ESP of 6.19%. Vishay is slated to report its third-quarter results before the market opens on October 26. Investors should note that the company has only missed our consensus earnings estimate twice within the past 10 quarters.
KLA-Tencor is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The company has met our surpassed the Zacks Consensus Estimate in 12 consecutive quarters, and shares are up nearly 36.5% in 2017 alone. As of right now, KLAC is repping an Earnings ESP of 1.48%. KLAC is scheduled to release its fiscal first-quarter earnings report after the closing bell on October 26.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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5 Strong Buy Stocks Poised to Beat Earnings Estimates Soon
As we head into the heart of Q3 earnings season, investors will want to maximize their profit potential by targeting companies that are likely to beat earnings estimates. While share price movements are no guarantee, stocks that surpass estimates are more likely to move higher in the days following their reports, and that post-earnings momentum can continue for several weeks.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
With that said, here are a Zacks Rank #1 (Strong Buy) stocks that are popping up on our Earnings ESP Screener right now:
1. Potlach Corporation (PCH - Free Report)
Potlach is an integrated forest products company with substantial timber resources. The company has surpassed the Zacks Consensus Estimate in each of the trailing three quarters, and the stock is now up nearly 26% year-to-date. Currently, PCH has an Earnings ESP of 1.43%. Potlach will report its third-quarter results after the market closes on October 24, and investors will be interested in seeing if this stock—which just hit a new 52-week high—can surge even higher.
2. Viper Energy Partners (VNOM - Free Report)
Viper Energy is engaged in owning, acquiring, and exploiting oil and natural gas properties primarily in North America. Viper has met or surpassed the Zacks Consensus Estimate in 11 straight quarters, and shares have surged more than 20% so far in 2014. As of right now, VNOM has an Earnings ESP of 3.37%. The company is scheduled to release its third-quarter results after the closing bell on October 24. Shares are near their 52-week high, but the stock might be able to break higher if it can impress investors again.
3. Greenbrier Companies (GBX - Free Report)
Greenbrier is a leading supplier of transportation equipment and services to the railroad and related industries. In the past two quarters, the company has smashed the Zacks Consensus Estimate by more than 25%. It’s also worth noting that Greenbrier belongs to our “Transportation - Equipment and Leasing” group, which currently sits in the top 9% of the Zacks Industry Rank. Heading into its report on October 27, Greenbrier is sporting an Earnings ESP of 2.35%. This is another stock near its 52-week high, but shares could find a new range on the back of another solid report.
4. Vishay Intertechnology (VSH - Free Report)
Vishay Intertechnology is a global manufacturer and supplier of discrete semiconductors. The company has a broad portfolio of unique solutions that are tailored to the Internet of Things. On the back of strong global demand for such solutions, VSH has moved nearly 29% higher this year. Currently, the company has an Earnings ESP of 6.19%. Vishay is slated to report its third-quarter results before the market opens on October 26. Investors should note that the company has only missed our consensus earnings estimate twice within the past 10 quarters.
5. KLA-Tencor Corporation (KLAC - Free Report)
KLA-Tencor is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The company has met our surpassed the Zacks Consensus Estimate in 12 consecutive quarters, and shares are up nearly 36.5% in 2017 alone. As of right now, KLAC is repping an Earnings ESP of 1.48%. KLAC is scheduled to release its fiscal first-quarter earnings report after the closing bell on October 26.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>