We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
These 2 Transportation Stocks Could Beat Earnings: Why They Should Be on Your Radar
Read MoreHide Full Article
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.
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.
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.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
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.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider ArcBest?
The final step today is to look at a stock that meets our ESP qualifications. ArcBest (ARCB - Free Report) earns a #3 (Hold) six days from its next quarterly earnings release on April 30, 2024, and its Most Accurate Estimate comes in at $1.58 a share.
ARCB has an Earnings ESP figure of +0.15%, which, as explained above, is calculated by taking the percentage difference between the $1.58 Most Accurate Estimate and the Zacks Consensus Estimate of $1.57. ArcBest is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ARCB is just one of a large group of Transportation stocks with a positive ESP figure. FedEx (FDX - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on June 18, 2024, FedEx holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $5.37 a share 55 days from its next quarterly update.
The Zacks Consensus Estimate for FedEx is $5.31, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.07%.
Because both stocks hold a positive Earnings ESP, ARCB and FDX could potentially post earnings beats in their next reports.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
These 2 Transportation Stocks Could Beat Earnings: Why They Should Be on Your Radar
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.
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.
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.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
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.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider ArcBest?
The final step today is to look at a stock that meets our ESP qualifications. ArcBest (ARCB - Free Report) earns a #3 (Hold) six days from its next quarterly earnings release on April 30, 2024, and its Most Accurate Estimate comes in at $1.58 a share.
ARCB has an Earnings ESP figure of +0.15%, which, as explained above, is calculated by taking the percentage difference between the $1.58 Most Accurate Estimate and the Zacks Consensus Estimate of $1.57. ArcBest is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ARCB is just one of a large group of Transportation stocks with a positive ESP figure. FedEx (FDX - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on June 18, 2024, FedEx holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $5.37 a share 55 days from its next quarterly update.
The Zacks Consensus Estimate for FedEx is $5.31, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.07%.
Because both stocks hold a positive Earnings ESP, ARCB and FDX could potentially post earnings beats in their next reports.
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 >>