How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings

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.

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.

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 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 look at a qualifying stock. Amphenol (APH) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $0.42 a share 30 days away from its upcoming earnings release on July 24, 2024.

Amphenol’s Earnings ESP sits at 3.7%, which, as explained above, is calculated by taking the percentage difference between the $0.42 Most Accurate Estimate and the Zacks Consensus Estimate of $0.41.

APH is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is AT&T (T).

Slated to report earnings on July 24, 2024, AT&T holds a #3 (Hold) ranking on the Zacks Rank, and it’s Most Accurate Estimate is $0.59 a share 30 days from its next quarterly update.

The Zacks Consensus Estimate for AT&T is $0.58, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 2.17%.

Because both stocks hold a positive Earnings ESP, APH and T 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 >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amphenol Corporation (APH) : Free Stock Analysis Report

AT&T Inc. (T) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research