Looking for a stock that might be in a good position to beat earnings at its next report? Consider Glaukos Corporation (GKOS - Free Report) , a firm in the Medicinal Instruments space, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, GKOS has beaten estimates by at least 115% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, GKOS expected to post a loss of 16 cents per share, while it actually produced earnings of 3 cents per share, a beat of 118.8%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 5 cents per share, when it actually produced earnings of 6 cents per share, a beat of 220%.
Thanks in part to this history, recent estimates have been moving higher for Glaukos. In fact, the Earnings ESPfor GKOS is positive, which is a great sign of a coming beat.
GLAUKOS CORP Price and EPS Surprise
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for GKOS, as the firm currently has a Zacks Earnings ESP of 200.00%, so another beat could be around the corner.
This is particularly true when you consider that GKOS has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70%of the time, so it seems pretty likely that GKOS could see another beat at its next report, especially if recent trends are any guide.
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>