How to Boost Your Portfolio with Top Consumer Stocks That Will Beat Earnings

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.

We know that financial results are important, but a company’s performance compared to financial 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 earnings surprises.

2 stocks to add 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) currently holds a Zacks Rank of #2 and its Most Accurate Estimate is $0.34 per share 20 days ahead of 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 Consumer Staples’ large databases of stocks with positive ESPs. Another solid looking stock is Kellogg (K).

Kellogg, which is preparing to report earnings on February 9, 2023, is currently a Zacks Rank #3 (Hold). Its best estimate is currently $0.87 per share, and K is one 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%.

IPAR and K’s positive ESP numbers 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 a positive or negative buying or selling surprise before being reported to trade profitably during earnings season. Check here >>

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

Kellogg Company (K): Free Stock Analysis Report

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