How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings
Wall Street watches a company’s quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company’s report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Carrier Global (CARR) earns a Zacks Rank #3 13 days from its next quarterly earnings release on October 24, 2024, and its Most Accurate Estimate comes in at $0.83 a share.
CARR has an Earnings ESP figure of 1.85%, which, as explained above, is calculated by taking the percentage difference between the $0.83 Most Accurate Estimate and the Zacks Consensus Estimate of $0.82.
CARR is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Lam Research (LRCX) as well.
Slated to report earnings on October 23, 2024, Lam Research holds a #3 (Hold) ranking on the Zacks Rank, and it’s Most Accurate Estimate is $3.20 a share 12 days from its next quarterly update.
For Lam Research, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.52 is 110.53%.
CARR and LRCX’s positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they’re reported for profitable earnings season trading. Check it out here >>
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Carrier Global Corporation (CARR) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
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