Why Investors Need to Take Advantage of These 2 Computer and Technology Stocks Now
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
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. Amphenol (APH) earns a Zacks Rank #2 two days from its next quarterly earnings release on January 22, 2025, and its Most Accurate Estimate comes in at $0.51 a share.
By taking the percentage difference between the $0.51 Most Accurate Estimate and the $0.50 Zacks Consensus Estimate, Amphenol has an Earnings ESP of 1.71%.
APH is just one of a large group of Computer and Technology stocks with a positive ESP figure. SentinelOne (S) is another qualifying stock you may want to consider.
SentinelOne, which is readying to report earnings on March 12, 2025, sits at a Zacks Rank #3 (Hold) right now. It’s Most Accurate Estimate is currently $0.02 a share, and S is 51 days out from its next earnings report.
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.
APH and S’ positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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Amphenol Corporation (APH) : Free Stock Analysis Report
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