Will Qiagen (QGEN) beat estimates again in its next earnings report?

Have you been looking for stocks that could be well positioned to maintain their strong performance streak in the upcoming report? Qiagen (QGEN), which belongs to the Zacks Medical – Biomedical and Genetics industry, is worth considering.

This maker of diagnostic products has had a strong streak of beating earnings estimates, especially considering its two previous reports. The average surprise for the last two quarters was 15.27%.

For the most recent quarter, Qiagen was expected to report earnings per share of $0.47, but instead reported earnings of $0.53 per share, representing a surprise of 12.77%. The consensus estimate for the prior quarter was $0.45 per share when it actually delivered $0.53 per share, representing a surprise of 17.78%.

Price and EPS surprise

With this earnings history in mind, Qiagen’s latest estimates are getting higher. In fact, the company’s Zacks Earnings ESP (expected surprise estimate) is positive, which is a great sign of earnings growth, especially when you combine this metric with a nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks in this combination, the number of stocks that beat the consensus could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimates to the Zacks Consensus Estimates for the quarter; The Most Accurate Estimate is the Zacks Consensus version, which is defined in terms of change. The idea is that analysts reviewing their estimates just before an earnings release have the latest information, which could potentially be more accurate than what they and other consensus participants had previously predicted.

At the moment, Qiagen’s earnings ESP is +0.71%, which suggests analysts have become bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another rally is likely just around the corner.

However, investors should remember that a negative earnings ESP reading does not mean a loss of earnings, but a negative value reduces the predictive power of the metric.

Many companies end up beating consensus EPS estimates, but that may not be the only basis for their stock’s rise. On the other hand, some stocks may hold even if they fall short of the consensus price.

For this reason, it is very important to check a company’s earnings ESP before its quarterly release to increase the chances of success. Use our Earnings ESP filter to find the best stocks to buy or sell before they report.

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