Investors are always on the hunt for stocks that are poised to outperform during earnings season, and it appears that Ford Motor Company (F) may fit the bill. With earnings on the horizon, all signs point toward a potentially positive report for the company.
Favorable Earnings Estimates
Recent activity around Ford Motor indicates a surge in favorable earnings estimate revisions, often a precursor to an earnings beat. Analysts have been revising estimates upward shortly before the earnings release – a promising signal for F.
In the current quarter, the Most Accurate Estimate for Ford Motor is at 14 cents per share, compared to the broader Zacks Consensus Estimate of 13 cents per share. This suggests a recent uptick in analyst estimates, resulting in a Zacks Earnings ESP of +6.55% heading into earnings season.
Ford Motor Company Price and EPS Surprise
Significance of Zacks Earnings ESP
The positive Zacks Earnings ESP bodes well for Ford Motor, historically indicating both positive surprises and market outperformance. Over the last decade, stocks with a positive Earnings ESP and a Zacks Rank #3 (Hold) or better have achieved a positive surprise nearly 70% of the time, with an average annual return of over 28%. This data demonstrates the potential power of a positive earnings ESP.
Implications for Investors
With Ford Motor holding a Zacks Rank #2 (Buy) and an ESP in positive territory, investors should take note of this stock ahead of the upcoming earnings release. The recent surge in earnings estimate revisions suggests that positive developments are on the horizon for Ford Motor, possibly leading to an earnings beat in the impending report.
It’s clear that the stage is set for Ford Motor to deliver promising results amid the highly anticipated earnings season. Things are looking up for F and investors may find themselves with a valuable opportunity to capitalize on this optimistic outlook.
Disclaimer: The presented information is for informative purposes only and does not constitute investment advice or a recommendation to buy or sell securities.
