Looking for a stock that might be in a good position to beat earnings at its next report? Consider AK Steel Holding Corporation , a firm in the Steel – Producers 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, AKS has beaten estimates by at least 60% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, AKS was expected to post a loss of 4 cents per share, while it actually produced earnings of 8 cents per share, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 13 cents per share, when it actually saw earnings per share of 21 cents instead, representing a 61.5% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for AK Steel Holding. In fact, the Earnings ESP for AKS 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 AKS, as the firm currently has a Zacks Earnings ESP of 42.86%, so another beat could be around the corner.
This is particularly true when you consider that AKS has a great Zacks Rank #2 (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 AKS could see another beat at its next report, especially if recent trends are any guide.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>