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How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. 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 figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Amphenol?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Amphenol (APH - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $0.51 a share two days away from its upcoming earnings release on January 22, 2025.
APH has an Earnings ESP figure of +1.71%, which, as explained above, is calculated by taking the percentage difference between the $0.51 Most Accurate Estimate and the Zacks Consensus Estimate of $0.50. Amphenol is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
APH is just one of a large group of Computer and Technology stocks with a positive ESP figure. SentinelOne (S - Free Report) is another qualifying stock you may want to consider.
SentinelOne is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on March 12, 2025. S' Most Accurate Estimate sits at $0.02 a share 51 days from its next earnings release.
SentinelOne's Earnings ESP figure currently stands at +37.5% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.01.
Because both stocks hold a positive Earnings ESP, APH and S could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. 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 figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Amphenol?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Amphenol (APH - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $0.51 a share two days away from its upcoming earnings release on January 22, 2025.
APH has an Earnings ESP figure of +1.71%, which, as explained above, is calculated by taking the percentage difference between the $0.51 Most Accurate Estimate and the Zacks Consensus Estimate of $0.50. Amphenol is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
APH is just one of a large group of Computer and Technology stocks with a positive ESP figure. SentinelOne (S - Free Report) is another qualifying stock you may want to consider.
SentinelOne is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on March 12, 2025. S' Most Accurate Estimate sits at $0.02 a share 51 days from its next earnings release.
SentinelOne's Earnings ESP figure currently stands at +37.5% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.01.
Because both stocks hold a positive Earnings ESP, APH and S could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>