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.

Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Air Products and Chemicals (APD) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $3.50 a share, just one day from its upcoming earnings release on November 7, 2024.

By taking the percentage difference between the $3.50 Most Accurate Estimate and the $3.44 Zacks Consensus Estimate, Air Products and Chemicals has an Earnings ESP of 1.63%.

APD is just one of a large group of Basic Materials stocks with a positive ESP figure. Energy Fuels (UUUU) is another qualifying stock you may want to consider.

Slated to report earnings on February 28, 2025, Energy Fuels holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0 a share 114 days from its next quarterly update.

For Energy Fuels, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of -$0.02 is 100%.

APD and UUUU's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report