For Immediate Release
Chicago, IL – September 20, 2023 – Stocks in this week’s article are American Woodmark (
AMWD Quick Quote AMWD - Free Report) , BJ's Restaurants ( BJRI Quick Quote BJRI - Free Report) , MercadoLibre ( MELI Quick Quote MELI - Free Report) , Asure Software ( ASUR Quick Quote ASUR - Free Report) and SkyWest ( SKYW Quick Quote SKYW - Free Report) . Looking for an Earnings Beat? 5 Stocks to Play
It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap high-quality stocks.
In this regard, we ran a screener that yielded
American Woodmark, BJ's Restaurants, MercadoLibre, Asure Software and SkyWest as the likely winners on their earnings beat potential. Why Is a Positive Earnings Surprise So Important?
Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn't tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations come into play sometimes. If a company's first quarter is seasonally weak and the fourth quarter strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
Then again, after much brainstorming and analysis of companies' financials and initiatives, Wall Street analysts project earnings of companies. They, in fact, club their insights and a company's guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company's expectation, as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks That Can Beat?
Now, finding stocks that have the potential to beat on the bottom line may be investors' dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company's ability to surpass estimates. Investors generally believe that the company will apply the same secret sauce to execute yet another earning beat in its next release.
Here are five of the eight stocks:
American Woodmark: The Zacks Rank #1 company is the third-largest manufacturer of kitchen and bath cabinets. You can see . the complete list of today's Zacks #1 Rank stocks here
The average earnings surprise of AMWD for the past four quarters is 25.74%.
BJ's Restaurants: The Zacks Rank #1 company owns and operates a chain of high-end casual dining restaurants in the United States.
The average earnings surprise of BJRI for the past four quarters is 121.21%.
MercadoLibre: The Zacks Rank #1 company is one of the largest e-commerce platforms in South America. The company is a market leader in e-commerce in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico and Uruguay, based on unique visitors and page views.
The average earnings surprise of MELI for the past four quarters is 30.10%.
Asure Software: The Zacks Rank #2 company is a provider of web-based workforce management solutions.
The average earnings surprise of ASUR for the past four quarters is 676.39%.
SkyWest: The Zacks Rank #2 company operates as a regional airline in the United States through its subsidiary SkyWest Airlines.
The average earnings surprise of SKYW for the past four quarters is 31.52%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
. Click here to sign up for a free trial to the Research Wizard today For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2152296/looking-for-an-earnings-beat-5-top-stocks-to-play Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
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Contact: Jim Giaquinto
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