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3 Stocks Likely to Beat Earnings Estimates This Week

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Earnings season is finally heating up, and this week should mark the first truly busy stretch for Q4 reports. We are coming off a series of great report seasons in 2017, so investors will want to stay focused on all of the upcoming marquee earnings announcements, as they could help establish the trend for 2018.

Of course, investors are always looking to find companies that are poised to post better-than-expected earnings results and experience strong post-earnings gains.

Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.

This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.

A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.

Today, we are giving our readers a very special treat: a free look three of the strongest stocks that are popping up on our Earnings ESP Screener right now. Check them out:

1.       Interactive Brokers Group, Inc. (IBKR - Free Report)

Interactive Brokers Group provides automated trade execution and custody of securities, commodities, and foreign exchange, around the clock, on over 120 markets. The company is set to report its fiscal fourth-quarter earnings results after the closing bell on Jan. 16. IBKR is currently a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +2.56%.

The firm has only met or surpassed estimates in two consecutive quarters, but our model is calling for another bear this quarter. Meanwhile, current consensus estimates are calling for earnings and revenue growth in the triple digits.

 

2.       Renasant Corporation (RNST - Free Report)

Renasant Corporation is the parent company of Renasant Bank, a 113-year-old financial services institution with assets of nearly $9 billion and 170 banking, mortgage, and insurance offices in the southeastern United States. RNST is sporting a Zacks Rank #2 (Buy) and an Earnings ESP of +1.64%.

Renasant is scheduled to release its latest quarterly report after the market closes on Jan. 16. The firm has met or surpassed estimates in nine consecutive quarters. Our current consensus estimates are calling for earnings growth of 3.39% and revenue growth of 15.20%.

 

3.       GATX Corporation (GATX - Free Report)

GATX Corporation is a global leader in railcar leasing. The company has one of the largest fleets in North America and also operates a significant European fleet. RNST is scheduled to announce its latest quarterly results before the market opens on Jan. 18. The stock is currently a Zacks Rank #2 (Buy) and has an Earnings ESP of +8.33%.

GATX has met or surpassed earnings estimates in nine consecutive quarters. Our consensus estimates are calling for earnings and revenue to slump 36.84% and 4.43%, respectively, but investors should be encouraged by the improving estimate picture heading into the report date.

 

Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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