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How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings
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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
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.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. 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.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Wesco International?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Wesco International (WCC - Free Report) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $3.78 a share 22 days away from its upcoming earnings release on May 4, 2023.
Wesco International's Earnings ESP sits at +5.93%, which, as explained above, is calculated by taking the percentage difference between the $3.78 Most Accurate Estimate and the Zacks Consensus Estimate of $3.57. WCC is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
WCC is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is CrowdStrike Holdings (CRWD - Free Report) .
CrowdStrike Holdings is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on June 1, 2023. CRWD's Most Accurate Estimate sits at $0.50 a share 50 days from its next earnings release.
CrowdStrike Holdings' Earnings ESP figure currently stands at +1.4% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.49.
WCC and CRWD's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
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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How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
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.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. 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.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Wesco International?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Wesco International (WCC - Free Report) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $3.78 a share 22 days away from its upcoming earnings release on May 4, 2023.
Wesco International's Earnings ESP sits at +5.93%, which, as explained above, is calculated by taking the percentage difference between the $3.78 Most Accurate Estimate and the Zacks Consensus Estimate of $3.57. WCC is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
WCC is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is CrowdStrike Holdings (CRWD - Free Report) .
CrowdStrike Holdings is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on June 1, 2023. CRWD's Most Accurate Estimate sits at $0.50 a share 50 days from its next earnings release.
CrowdStrike Holdings' Earnings ESP figure currently stands at +1.4% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.49.
WCC and CRWD's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
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 >>