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3 Companies Set to Positively Surprise this Earnings Season
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Earnings season has arrived, with Friday’s big bank results shifting the period into a much higher gear. The period looks to be positive, with earnings growth expected to be strong, again underpinned by a strong forecasted showing from the Tech sector.
Concerning looming surprises, ZIM Integrated Shipping Services (ZIM - Free Report) , Decker’s Outdoors (DECK - Free Report) , and Hims and Hers Health (HIMS - Free Report) , could all bring positivity, with each boasting a positive Earnings ESP Score and a favorable Zacks Rank.
Zacks Earnings ESP (Expected Surprise Prediction) finds companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is generally more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our ten-year backtest
But how do expectations stack up heading into the releases? Let’s take a closer look.
Decker’s Outdoor
Deckers Outdoor, a current Zacks Rank #2 (Buy), is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.
The revisions trend for the quarter to be released has been notably positive, up 23% to $3.50 per share since mid-April. Big growth is expected, with the estimate suggesting a 40% pop in earnings Y/Y.
Image Source: Zacks Investment Research
Shares have been on a tear year-to-date, gaining 32% and widely outperforming on the back of positive quarterly results stemming from brand momentum.
ZIM Integrated Shipping Services
ZIM Integrated Shipping Services, a current Zacks Rank #2 (Buy), provides container shipping and related services. The revisions trend for its upcoming release has remained bright, up 17% since mid-April.
The company’s growth is expected to return in a big way, with the estimate suggesting a 160% climb in earnings from the year-ago period.
Image Source: Zacks Investment Research
Shares have been red-hot in 2024, gaining 80% and outperforming nicely after a forgettable 2023.
Hims and Hers Health
Hims & Hers Health, a Zacks Rank #1 (Strong Buy), is a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals, enabling medical care for numerous conditions related to mental health, sexual health, dermatology, primary care, and more.
The earnings estimate revisions trend has jumped higher over the recent months, up 150% to $0.05 per share and suggesting 270% year-over-year growth.
Image Source: Zacks Investment Research
The stock has been on an unbelievable run in 2024, gaining 140% and being supported by favorable business trends that have led to strong quarterly results.
Bottom Line
The highly-awaited Q2 earnings season has arrived, with the big banks’ results really shifting the period into higher gear.
And concerning earnings positivity, all three companies above – ZIM Integrated Shipping Services (ZIM - Free Report) , Decker’s Outdoors (DECK - Free Report) , and Hims and Hers Health (HIMS - Free Report) – could all bring precisely that, with each carrying a favorable Zacks Rank and a positive Earnings ESP score.
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3 Companies Set to Positively Surprise this Earnings Season
Earnings season has arrived, with Friday’s big bank results shifting the period into a much higher gear. The period looks to be positive, with earnings growth expected to be strong, again underpinned by a strong forecasted showing from the Tech sector.
Concerning looming surprises, ZIM Integrated Shipping Services (ZIM - Free Report) , Decker’s Outdoors (DECK - Free Report) , and Hims and Hers Health (HIMS - Free Report) , could all bring positivity, with each boasting a positive Earnings ESP Score and a favorable Zacks Rank.
Zacks Earnings ESP (Expected Surprise Prediction) finds companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is generally more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our ten-year backtest
But how do expectations stack up heading into the releases? Let’s take a closer look.
Decker’s Outdoor
Deckers Outdoor, a current Zacks Rank #2 (Buy), is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.
The revisions trend for the quarter to be released has been notably positive, up 23% to $3.50 per share since mid-April. Big growth is expected, with the estimate suggesting a 40% pop in earnings Y/Y.
Image Source: Zacks Investment Research
Shares have been on a tear year-to-date, gaining 32% and widely outperforming on the back of positive quarterly results stemming from brand momentum.
ZIM Integrated Shipping Services
ZIM Integrated Shipping Services, a current Zacks Rank #2 (Buy), provides container shipping and related services. The revisions trend for its upcoming release has remained bright, up 17% since mid-April.
The company’s growth is expected to return in a big way, with the estimate suggesting a 160% climb in earnings from the year-ago period.
Shares have been red-hot in 2024, gaining 80% and outperforming nicely after a forgettable 2023.
Hims and Hers Health
Hims & Hers Health, a Zacks Rank #1 (Strong Buy), is a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals, enabling medical care for numerous conditions related to mental health, sexual health, dermatology, primary care, and more.
The earnings estimate revisions trend has jumped higher over the recent months, up 150% to $0.05 per share and suggesting 270% year-over-year growth.
The stock has been on an unbelievable run in 2024, gaining 140% and being supported by favorable business trends that have led to strong quarterly results.
Bottom Line
The highly-awaited Q2 earnings season has arrived, with the big banks’ results really shifting the period into higher gear.
And concerning earnings positivity, all three companies above – ZIM Integrated Shipping Services (ZIM - Free Report) , Decker’s Outdoors (DECK - Free Report) , and Hims and Hers Health (HIMS - Free Report) – could all bring precisely that, with each carrying a favorable Zacks Rank and a positive Earnings ESP score.