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These 2 Consumer Staples Stocks Could Beat Earnings: Why They Should Be on Your Radar
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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
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.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 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 Monster Beverage?
The final step today is to look at a stock that meets our ESP qualifications. Monster Beverage (MNST - Free Report) earns a #3 (Hold) 19 days from its next quarterly earnings release on February 27, 2024, and its Most Accurate Estimate comes in at $0.40 a share.
MNST has an Earnings ESP figure of +1.65%, which, as explained above, is calculated by taking the percentage difference between the $0.40 Most Accurate Estimate and the Zacks Consensus Estimate of $0.39. Monster Beverage is one of a large database 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.
MNST is one of just a large database of Consumer Staples stocks with positive ESPs. Another solid-looking stock is Colgate-Palmolive (CL - Free Report) .
Slated to report earnings on April 26, 2024, Colgate-Palmolive holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.82 a share 78 days from its next quarterly update.
The Zacks Consensus Estimate for Colgate-Palmolive is $0.81, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.18%.
Because both stocks hold a positive Earnings ESP, MNST and CL could potentially post earnings beats in their next reports.
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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These 2 Consumer Staples Stocks Could Beat Earnings: Why They Should Be on Your Radar
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
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.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 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 Monster Beverage?
The final step today is to look at a stock that meets our ESP qualifications. Monster Beverage (MNST - Free Report) earns a #3 (Hold) 19 days from its next quarterly earnings release on February 27, 2024, and its Most Accurate Estimate comes in at $0.40 a share.
MNST has an Earnings ESP figure of +1.65%, which, as explained above, is calculated by taking the percentage difference between the $0.40 Most Accurate Estimate and the Zacks Consensus Estimate of $0.39. Monster Beverage is one of a large database 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.
MNST is one of just a large database of Consumer Staples stocks with positive ESPs. Another solid-looking stock is Colgate-Palmolive (CL - Free Report) .
Slated to report earnings on April 26, 2024, Colgate-Palmolive holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.82 a share 78 days from its next quarterly update.
The Zacks Consensus Estimate for Colgate-Palmolive is $0.81, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.18%.
Because both stocks hold a positive Earnings ESP, MNST and CL could potentially post earnings beats in their next reports.
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 >>