How to Boost Your Portfolio with Top Finance Stocks Set to Beat Earnings

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

You are viewing: How to Boost Your Portfolio with Top Finance Stocks Set to Beat Earnings

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.

The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.

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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. Progressive (PGR) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $3.58 a share, just 13 days from its upcoming earnings release on January 22, 2025.

PGR has an Earnings ESP figure of 4.03%, which, as explained above, is calculated by taking the percentage difference between the $3.58 Most Accurate Estimate and the Zacks Consensus Estimate of $3.44.

PGR is just one of a large group of Finance stocks with a positive ESP figure. Palomar (PLMR) is another qualifying stock you may want to consider.

Slated to report earnings on February 12, 2025, Palomar holds a #2 (Buy) ranking on the Zacks Rank, and it’s Most Accurate Estimate is $1.24 a share 34 days from its next quarterly update.

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Palomar’s Earnings ESP figure currently stands at 0.27% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.24.

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

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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