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These 2 Transportation Stocks Could Beat Earnings: Why They Should Be on Your Radar
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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.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more 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.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% 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 Union Pacific?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Union Pacific (UNP - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $2.76 a share, just 20 days from its upcoming earnings release on April 25, 2024.
Union Pacific's Earnings ESP sits at +9.57%, which, as explained above, is calculated by taking the percentage difference between the $2.76 Most Accurate Estimate and the Zacks Consensus Estimate of $2.52. UNP is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UNP is just one of a large group of Transportation stocks with a positive ESP figure. JetBlue Airways (JBLU - Free Report) is another qualifying stock you may want to consider.
JetBlue Airways is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 23, 2024. JBLU's Most Accurate Estimate sits at -$0.52 a share 18 days from its next earnings release.
The Zacks Consensus Estimate for JetBlue Airways is -$0.53, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.45%.
UNP and JBLU'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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These 2 Transportation Stocks Could Beat Earnings: Why They Should Be on Your Radar
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.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more 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.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% 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 Union Pacific?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Union Pacific (UNP - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $2.76 a share, just 20 days from its upcoming earnings release on April 25, 2024.
Union Pacific's Earnings ESP sits at +9.57%, which, as explained above, is calculated by taking the percentage difference between the $2.76 Most Accurate Estimate and the Zacks Consensus Estimate of $2.52. UNP is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UNP is just one of a large group of Transportation stocks with a positive ESP figure. JetBlue Airways (JBLU - Free Report) is another qualifying stock you may want to consider.
JetBlue Airways is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 23, 2024. JBLU's Most Accurate Estimate sits at -$0.52 a share 18 days from its next earnings release.
The Zacks Consensus Estimate for JetBlue Airways is -$0.53, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.45%.
UNP and JBLU'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 >>