Published on 16 Nov 2022 on Zacks via Yahoo Finance
Hunting for stocks with estimate-beating potential ahead of an earnings season is a common practice among investors. This is because investors always try to place themselves ahead of time and look to play stocks that are rich in quality.
Why Is a Positive Earnings Surprise So Important?
Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if it has been decelerating.