Optimizing Investment Portfolios with Business Services Stocks Poised to Outperform Earnings Estimates

For investors aiming to enhance their portfolio performance, a crucial strategy lies in identifying and investing in stocks that are set to surpass quarterly earnings expectations. One effective tool for this purpose is the Zacks Earnings ESP (Expected Surprise Prediction), which aids investors in pinpointing such stocks with higher accuracy. By focusing on top business services stocks that hold the potential to beat earnings estimates, investors can position themselves for better returns.

Importance of Earnings Surprises

Earnings surprises have the power to significantly impact a company's stock price. Stocks that beat market expectations often see an uplift in their share prices as the market adjusts to the positive news. Conversely, stocks that miss the mark tend to underperform. Therefore, investors who can reliably anticipate these surprises can gain an edge in the market.

The Advantage of Zacks Earnings ESP

The Zacks Earnings ESP tool is designed to give investors an earnings-based edge by comparing the Most Accurate Estimate to the Zacks Consensus Estimate. When the Estimated Surprise Prediction is positive, there is a greater chance that the stock will beat the consensus estimate, making it a valuable resource for investors looking to target potential outperformers ahead of earnings reports.

Business Services Stocks to Watch

Among the myriad of stocks, two notable tickers stand out in the business services sector: MA and SQ. Mastercard Incorporated MA, a leading financial services corporation, processes payments worldwide and has shown robust financial performance, with a solid track record of beating earnings estimates. Similarly, Square, Inc. SQ, known for its comprehensive payment solutions, continues to innovate and expand, positioning itself as a strong candidate for earnings surprises.

Investors focusing on these and other similar stocks – armed with tools like the Zacks Earnings ESP – may find themselves well-equipped to capitalize on positive earnings surprises and, consequently, see appreciable growth in their investment portfolios.

investment, earnings, stocks