Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. However, the model's predictive power is significant for positive ESP readings only.Ī positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). National manage my stock portfolio, and knew others had Men's Squash. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. Inphi Reaches Analyst Target Price In recent trading, shares of Inphi Corp (NYSE: IPHI) have crossed above the average analyst 12-month target price of 38.25, changing hands for 42.25/share. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. This widget shows the number of times this symbol reached a new low price for specific periods, from the past 5-Days to the past 20-Years. When positive, the current price is that much higher than the highest price from that period. This insight is at the core of our proprietary surprise prediction model - the Zacks Earnings ESP (Expected Surprise Prediction). When negative, the current price is that much lower than the highest price reported for the period.
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out.
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