How to grow your portfolio with the best consumer stocks that will beat profits

Quarterly financial reports play a key role on Wall Street because they help investors see how a company is doing and what may happen in the near future. And of all the metrics and outcomes to consider, profits are some of the most important.

We know that earnings results are key, but how a company compares to expectations can be even more important when it comes to share prices, especially in the short term. This means that investors may want to take advantage of these earnings surprises.

2 stocks worth adding to your watchlist

The purpose of the Zacks Earnings ESP, or Expected Surprise Rate, is to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst re-evaluates his or her earnings estimate ahead of an earnings release, it likely means he or she has new information that could be more accurate. The essence of the ESP model is to compare the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the predicted expected surprise.

The last thing we’ll do today, now that we have an idea about ESP and how powerful a tool it can be, is to take a look at qualifying stocks. Inter Parfums (IPAR) The company currently has a Zacks Rank #2 and a Most Accurate Estimate of $0.34 per share with 20 days left until its earnings release on February 28, 2023.

IPAR has an Earnings ESP of 13.33%, which, as explained above, is calculated by taking the percentage difference between the Most Accurate Estimate of $0.34 and the Zacks Consensus Estimate of $0.30.

IPAR is one of many Consumer Staples stock databases with positive ESPs. Another solid looking stock is Kellogg (K).

Kellogg, which is scheduled to report earnings on February 9, 2023, is currently sporting a Zacks Rank of #3 (Hold). Its Most Accurate Estimate is currently $0.87 per share with K being a day away from its next earnings report.

The Zacks Consensus Estimate for Kellogg Company is $0.84, and if you take the percentage difference between that number and its Most Accurate Estimate, you get an Earnings ESP of 4.12%.

Positive IPAR and K ESP data tell us that both stocks have a good chance of beating analysts’ expectations in their next earnings report.

Find stocks to buy or sell before they’re reported

Use the Zacks Earnings ESP filter to view stocks with the highest probability of producing a positive or negative buying or selling surprise before they report for profitable trading during earnings season. Check here >>

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Inter Parfums, Inc. (IPAR): Free Stock Analysis Report

Kellogg Company (K): Free Stock Analysis Report

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