Wall Street closely monitors quarterly reports to gauge a company’s performance, with earnings often being the focal point. Investors look for positive earnings surprises to capture stronger returns, a practice facilitated by tools like the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP identifies potential earnings surprises by analyzing recent analyst revisions. Stocks combining a Zacks Rank #3 (Hold) or better with a positive Earnings ESP have historically produced positive surprises 70% of the time and 28.3% annual returns on average.
AGNC Investment (NASDAQ) currently holds a Zacks Rank #3 (Hold) with an Earnings ESP of +5.66%, suggesting it may exceed its upcoming earnings estimate of $0.53 per share. Similarly, Healthpeak (NYSE), also a Zacks Rank #3 (Hold), has an Earnings ESP of +1.15%, indicating it could beat its expected $0.44 per share earnings.
Both AGNC and Healthpeak are poised for potential earnings beats in their forthcoming reports, making them stocks to watch.
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