Looking for a inventory that has been persistently beating earnings estimates and may be very well positioned to hold the streak alive in its up coming quarterly report? Asbury Automotive Group (ABG), which belongs to the Zacks Automotive – Retail and Full Product sales marketplace, could be a terrific candidate to look at.
This vehicle dealership chain has witnessed a awesome streak of beating earnings estimates, specially when searching at the previous two experiences. The average surprise for the previous two quarters was 6.91%.
For the most the latest quarter, Asbury Automotive was predicted to put up earnings of $2.47 per share, but it documented $2.52 for each share alternatively, representing a surprise of 2.02%. For the previous quarter, the consensus estimate was $1.61 per share, whilst it essentially produced $1.80 per share, a shock of 11.80%.
Price tag and EPS Surprise
Many thanks in portion to this heritage, there has been a favorable improve in earnings estimates for Asbury Automotive these days. In fact, the Zacks Earnings ESP (Predicted Shock Prediction) for the inventory is favourable, which is a great indicator of an earnings conquer, notably when combined with its stable Zacks Rank.
Our investigate displays that shares with the combination of a positive Earnings ESP and a Zacks Rank #3 (Maintain) or better deliver a beneficial shock nearly 70% of the time. In other words and phrases, if you have 10 stocks with this mixture, the selection of shares that conquer the consensus estimate could be as higher as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Exact Estimate is a variation of the Zacks Consensus whose definition is similar to change. The concept below is that analysts revising their estimates suitable prior to an earnings launch have the latest information and facts, which could potentially be far more precise than what they and many others contributing to the consensus experienced predicted previously.
Asbury Automotive has an Earnings ESP of +19.13% at the minute, suggesting that analysts have developed bullish on its around-term earnings opportunity. When you incorporate this good Earnings ESP with the stock’s Zacks Rank #2 (Purchase), it shows that another conquer is quite possibly all around the corner.
Traders need to be aware, having said that, that a detrimental Earnings ESP studying is not indicative of an earnings skip, but a damaging value does minimize the predictive electric power of this metric.
A lot of firms finish up beating the consensus EPS estimate, but that might not be the sole basis for their stocks going greater. On the other hand, some stocks may maintain their ground even if they finish up lacking the consensus estimate.
Mainly because of this, it can be definitely critical to look at a firm’s Earnings ESP in advance of its quarterly release to boost the odds of accomplishment. Make positive to utilize our Earnings ESP Filter to uncover the ideal shares to obtain or market right before they have claimed.
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