Benzinga - by Zacks, Benzinga Contributor.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
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.
Should You Consider Travelers?
The final step today is to look at a stock that meets our ESP qualifications. Travelers (NYSE: TRV) earns a #2 (Buy) 30 days from its next quarterly earnings release on April 17, 2024, and its Most Accurate Estimate comes in at $5.20 a share.
By taking the percentage difference between the $5.20 Most Accurate Estimate and the $4.74 Zacks Consensus Estimate, Travelers has an Earnings ESP of +9.66%. Investors should also know that TRV is one of a large group of stocks with positive ESPs.
TRV is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Iron Mountain (NYSE: IRM) as well.
Slated to report earnings on May 2, 2024, Iron Mountain holds a #1 (Strong Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.06 a share 45 days from its next quarterly update.
The Zacks Consensus Estimate for Iron Mountain is $1.05, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.26%.
TRV and IRM's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
To read this article on Zacks.com click here.