Unveiling the Potential of Consumer Discretionary Stocks with Positive Earnings Prospects

Investors seeking to bolster their portfolios with consumer discretionary stocks that are poised for an earnings surprise have a powerful tool at their disposal: the Zacks Earnings ESP (Expected Surprise Prediction). This proprietary method aids in identifying stocks that may surpass earnings expectations. By focusing on the most recent analyst revisions, the Earnings ESP can offer a glimpse into the future financial performance of a company before earnings reports are released.

Understanding Earnings ESP

The Earnings ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the difference expressed as a percentage. A positive Earnings ESP implies that analysts have recently become more bullish on a company's earnings potential. Historically, when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy), stocks with a positive Earnings ESP have a higher chance of delivering positive earnings surprises.

Identifying Strong Consumer Discretionary Stocks

An excellent example of a strong consumer discretionary stock is CHTR, Charter Communications, Inc. As an American powerhouse in telecommunications and mass media, it has the potential to benefit from current market trends and consumer behavior.

Another noteworthy stock is RCL, the Royal Caribbean Group. Once known as Royal Caribbean Cruises Ltd., this cruise holding company has made waves in the leisure sector and its earnings potential is buoyed by the resurgence in the travel industry.

Now is an opportune time for investors to utilize the Zacks Earnings ESP to their advantage and possibly secure investments in companies like CHTR and RCL before they report potentially positive earnings surprises.

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