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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might 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 figure.
The final step today is to look at a stock that meets our ESP qualifications. Kinross Gold (KGC) earns a Zacks Rank #3 12 days from its next quarterly earnings release on February 12, 2025, and its Most Accurate Estimate comes in at $0.31 a share.
KGC has an Earnings ESP figure of 36.76%, which, as explained above, is calculated by taking the percentage difference between the $0.31 Most Accurate Estimate and the Zacks Consensus Estimate of $0.23.
KGC is part of a big group of Basic Materials stocks that boast a positive ESP, and investors may want to take a look at DuPont de Nemours (DD) as well.
DuPont de Nemours is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on February 11, 2025. DD's Most Accurate Estimate sits at $0.98 a share 11 days from its next earnings release.
For DuPont de Nemours, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.98 is 0.06%.
Because both stocks hold a positive Earnings ESP, KGC and DD 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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Kinross Gold Corporation (KGC) : Free Stock Analysis Report
DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report