Looking for stocks with positive earnings momentum? Check out these 2 consumer discretionary names

Profits are arguably the single most important number in a company’s quarterly financial report. Wall Street clearly considers all other metrics and management considerations, but EPS helps cut through all the noise.

The earnings themselves are key, but beating or missing the bottom line can sometimes be just as, if not more, important. That’s why investors should consider paying close attention to these earnings surprises, as a big beat could help the stock climb even higher.

2 stocks worth adding 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 closer look at the stocks that currently meet these requirements. Crocs (CROX) the company is currently sporting a Zacks Rank #3 with a Most Accurate Estimate of $1.58 per share just zero days ahead of its upcoming earnings release on May 5, 2022.

Taking the percentage difference between the Most Accurate Estimate of $1.58 and the Zacks Consensus Estimate of $1.56, Crocs has an Earnings ESP of 1.07%.

CROX is one of many Consumer Discretionary stocks with positive ESPs. Another solid looking stock is Camping World (CWH).

Camping World, expected to report earnings on August 2, 2022, is currently sporting a Zacks Rank of #4 (Sell). The most accurate estimate is currently at $2.17 per share, with 89 days until CWH’s next earnings report.

For Camping World, the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate of $2.12 is 2.03%.

Since both stocks have a positive Earnings ESP, CROX and CWH could potentially post higher-than-expected earnings in their next reports.

Find stocks you can buy or sell before they are 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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Crocs, Inc. (CROX): Free Stock Analysis Report

Camping World (CWH): Free Stock Analysis Report

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