Why they should be on your radar

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. Of all the metrics and outcomes to consider, earnings are one of the most important.

The amount you earn is crucial in itself, but achieving your 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 hit could help the stock rise even more.

2 stocks to add to your watchlist

The Zacks Earnings ESP is more formally known as the Expected Surprise Estimate, and is designed to gauge the latest analyst estimate revisions ahead of a company’s report. The idea is relatively intuitive because a newer forecast may 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.

Now that we understand what ESP is and how beneficial it can be, let’s take a look at stocks that currently meet these criteria. Polaris Inc. (PII) is currently sporting a Zacks Rank of #3 with a Most Accurate Estimate of $1.80 per share just 14 days away from its upcoming earnings release on April 25, 2023.

Taking the percentage difference between the Most Accurate Estimate of $1.80 and the Zacks Consensus Estimate of $1.73, Polaris Inc has an Earnings ESP of 3.85%.

PII is one of the large databases of car and truck tire stocks with positive ESPs. Another solid looking stock is Mobileye Global (MBLY).

Mobileye Global is expected to report earnings on April 27, 2023 and has a Zacks Rank #3 (Hold) with a Most Accurate Estimate of $0.15 per share 16 days out from its next quarterly update.

Mobileye Global’s Earnings ESP is currently 11.94% after adjusting for the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate of $0.13.

Positive ESP numbers for PII and MBLY tell us that both stocks have a good chance of beating analyst expectations in their next earnings report.

Find stocks you can buy or sell before they are reported

Use the Zacks Earnings ESP filter to view stocks most likely to experience positive or negative surprises to buy or sell before they are reported as seasonal earnings. Check here >>

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Polaris Inc. (PII): Free stock analysis report

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