Back to top

Why Earnings Season Could Be Great for TESARO (TSRO)
August 04, 2017

Read MoreHide Full Article

Investors are always looking for stocks that are poised to beat at earnings season and TESARO, Inc. (TSRO - 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 TESARO 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 TSRO in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at a loss of $2.09 per share for TSRO, compared to a broader Zacks Consensus Estimate of a loss of $2.52 per share. This suggests that analysts have very recently bumped up their estimates for TSRO, giving the stock a Zacks Earnings ESP of +17.06% heading into earnings season.

TESARO, Inc. Price and EPS Surprise

TESARO, Inc. Price and EPS Surprise | TESARO, Inc. Quote

Why is this Important?

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 TSRO has a Zacks Rank #3 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 TESARO, and that a beat might be in the cards for the upcoming report.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>




In-Depth Zacks Research for the Tickers Above


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


TESARO, Inc. (TSRO) - free report >>


More from Zacks Tale of the Tape

You May Like