Why Investors Need to Take Advantage of These 2 Computer and Technology Stocks Now

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.

The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.

2 Stocks to Add to Your Watchlist

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.

The final step today is to look at a stock that meets our ESP qualifications. nVent Electric (NVT) earns a Zacks Rank #2 four days from its next quarterly earnings release on July 26, 2024, and its Most Accurate Estimate comes in at $0.83 a share.

By taking the percentage difference between the $0.83 Most Accurate Estimate and the $0.82 Zacks Consensus Estimate, nVent Electric has an Earnings ESP of 0.51%.

NVT is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Micron (MU) as well.

Slated to report earnings on September 25, 2024, Micron holds a #2 (Buy) ranking on the Zacks Rank, and it’s Most Accurate Estimate is $1.10 a share 65 days from its next quarterly update.

The Zacks Consensus Estimate for Micron is $1.08, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 2.63%.

NVT and MU’s positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

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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nVent Electric PLC (NVT) : Free Stock Analysis Report

Micron Technology, Inc. (MU) : Free Stock Analysis Report

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