Back to top

Image: Bigstock

Is a Surprise Coming for United Therapeutics (UTHR) This Earnings Season?

Read MoreHide Full Article

Investors are always looking for stocks that are poised to beat at earnings season andUnited Therapeutics Corporation (UTHR - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because United Therapeutics is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for UTHR in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at $3.67 per share for UTHR, compared to a broader Zacks Consensus Estimate at $3.48 per share. This suggests that analysts have very recently bumped up their estimates for UTHR, giving the stock a Zacks Earnings ESP of 5.46% heading into earnings season.

Why is this Important?

UTD THERAPEUTIC Price and EPS Surprise

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that UTHR has a Zacks Rank #3 (Hold) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for United Therapeutics, and that a beat might be in the cards for the upcoming report.

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>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


United Therapeutics Corporation (UTHR) - free report >>

Published in