Why investors should take advantage of these two business services stocks now

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.

Earnings numbers are key in themselves, but hitting 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 bump could help drive the stock even higher.

2 stocks worth adding to your watchlist

The Zacks Earnings ESP is more formally known as the Expected Surprise Estimate and is intended to be a way to see the latest analyst estimate revisions ahead of a company’s earnings report. The idea is relatively intuitive, as a newer forecast can 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.

The last thing we’re going to do today, now that we have an idea of ​​what ESP is and how powerful a tool it can be, is take a look at some qualifying stocks. Shift4 Payments (FOUR) The company currently carries a Zacks Rank #3 with a Most Accurate Estimate of $0.56 per share with 17 days left until its earnings release is scheduled for May 4, 2023.

Taking the percentage difference between the Most Accurate Estimate of $0.56 and the Zacks Consensus Estimate of $0.40, Shift4 Payments has an Earnings ESP of 40.88%.

FOUR is just one of a large group of business services companies that have a positive ESP. Accenture (ACN) is another qualifying stock you may want to consider.

Accenture, which is scheduled to report earnings on June 22, 2023, is currently sporting a Zacks Rank of #2 (Buy). The most accurate estimate is currently $2.95 per share, and ACN is 66 days away from its next earnings release.

Accenture’s Earnings ESP currently stands at 0.51% after taking into account the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate of $2.94.

FOUR’s data and ACN’s positive ESP 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 see the stocks most likely to produce a positive or negative buying or selling surprise before they report earnings from the earnings season. Check it out here >>

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Shift4 Payments, Inc. (FOUR): Free stock analysis report

Accenture PLC (ACN): Free Stock Analysis Report

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