
These 2 Computer and Technology Stocks Could Beat Earnings — Here’s Why They’re Worth Watching
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Related Stocks:AAPL
Wall Street watchers often focus on quarterly earnings because beating expectations can send a stock higher, while missing can hurt performance. One way to spot companies that might beat consensus forecasts is by using the Zacks Earnings ESP (Expected Surprise Prediction), which compares a stock’s most recent analyst estimate with the broader consensus to find the ones with the best probability of an earnings surprise. Stocks that combine a positive Earnings ESP with a Zacks Rank of #3 (Hold) or better have historically posted positive earnings surprises about 70% of the time, generating strong average returns over the long run.
Two computer and technology names currently showing positive Earnings ESP readings are Baidu Inc. (BIDU) and Atlassian Corporation PLC (TEAM). Baidu, with a Zacks Rank #3, has an ESP of roughly +8.67% heading into its next earnings report, suggesting analysts are revising estimates upward. TEAM, a Zacks Rank #2 (Buy), also holds a positive but smaller ESP figure as it approaches its upcoming results. These metrics indicate that both companies have a greater chance of topping earnings expectations when they report next, making them stocks investors may want to monitor.
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