Looking for a stock that might be in a good position to beat earnings at its next report? Consider Alcoa Inc. ( AA ), a firm in the Mining Non-Ferrous industry, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, AA has beaten estimates by at least 35% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, AA expected to earn 5 cents per share, while it actually produced earnings of 9 cents per share, a beat of 80%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 13 cents per share, when it actually saw earnings of 18 cents per share instead, representing a 38.5% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Alcoa. In fact, the Earnings ESP for AA is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for AA, as the firm currently has a Zacks Earnings ESP of 5.88%, so another beat could be around the corner.
This is particularly true when you consider that AA has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that AA could see another beat at its next report, especially if recent trends are any guide.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportALCOA INC (AA): Free Stock Analysis ReportTo read this article on Zacks.com click here.