Quantcast

Should You Buy Delphi Technologies (DLPH) Ahead of Earnings?


Shutterstock photo

Investors are always looking for stocks that are poised to beat at earnings season and Delphi Technologies PLCDLPH may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Delphi Technologies is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings-with the most up-to-date information possible-is a pretty good indicator of some favorable trends underneath the surface for DLPH in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at $1.37 per share for DLPH, compared to a broader Zacks Consensus Estimate of $1.16 per share. This suggests that analysts have very recently bumped up their estimates for DLPH, giving the stock a Zacks Earnings ESP of +18.08% heading into earnings season.

Delphi Technologies PLC Price and EPS Surprise

Delphi Technologies PLC Price and EPS Surprise | Delphi Technologies PLC Quote



Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here ).

Given that DLPH has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Clearly, recent earnings estimate revisions suggest that good things are ahead for Delphi Technologies, and that a beat might be in the cards for the upcoming report.

Can Hackers Put Money INTO Your Portfolio?

Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.

Zacks has just released Cybersecurity! An Investor's Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.

Download the new report now>>


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 report

Delphi Technologies PLC (DLPH): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Earnings , Investing Ideas , Stocks
Referenced Symbols: DLPH


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research








Research Brokers before you trade

Want to trade FX?