Looking for a stock that might be in a good position to beat earnings at its next report? Consider Koppers Holdings Inc. (KOP - Free Report) , a firm in the Chemical – Diversified industry, 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, KOP has beaten estimates by at least 50% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, KOP was expected to post earnings of 62 cents per share, while it actually produced earnings of 93 cents per share, a beat of 50%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 66 cents per share, when it actually saw earnings per share of 99 cents instead, representing a 50% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Koppers Holdings. In fact, the Earnings ESP for KOP is positive, which is a great sign of a coming beat.
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 KOP, as the firm currently has a Zacks Earnings ESP of 7.69%, so another beat could be around the corner.
This is particularly true when you consider that KOP 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 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 KOP 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>>