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Buy These 3 Stocks Set to Beat Earnings Estimates

Investor sentiment is still not back to its pre-sell-off high, but markets have slowly stabilized for now. Nonetheless, it never hurts to look for stocks that seem poised to top earnings estimates amid these somewhat uncertain times.

Finding stocks that top analysts' expectations is a great and proven way to beat the market. With that in mind, one way for investors to try to make solid returns during volatile times is to pick stocks expected to beat earnings estimates.

Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.

This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.

A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.

Today, amid market uncertainty, we are giving our readers a free look at three strong stocks in order to help them identify a few companies that seem ready to top earnings estimates soon.

1. Boise Cascade Company BCC

This Idaho-based wood products, plywood, lumber, and particleboard manufacturer is currently a Zacks Rank #1 (Strong Buy) and sports an overall "A" VGM score. Boise Cascade has also seen its shares climb nearly 12% in the last four weeks amid the selloff.

Our current Zacks Consensus Estimate is calling for Boise Cascade's fourth-quarter earnings to skyrocket from $0.03 per share in the year-ago period to $0.29 per share, or an 866.67% surge. On top of that, the company boasts an Earnings ESP of 15.79%, which means earnings estimates have been higher directly ahead of the firm's Q4 results.

Boise Cascade is set to report its fourth-quarter and full fiscal year earnings on Monday, Feb. 26, before the opening bell.

2. Cabot Oil & Gas Corporation COG

This Houston-based company is engaged in the development, exploitation, and exploration of oil and gas exclusively in the continental U.S. COG is currently a Zacks Rank #1 (Strong Buy) and boasts an "A" grade for Growth in our Style Scores system.

The firm also rocks an Earnings ESP of 8.27%, signaling that analyst sentiment about Cabot has gotten stronger recently. What's more, Cabot is projected to see its bottom line jump to $0.12 per share after posting just a $0.01 per share profit in the year-ago period.

Cabot is set to report its Q4 and fiscal full-year earnings before the opening bell on Friday, Feb. 23.

3. Huntsman Corporation HUN

This global manufacturer and marketer of differentiated and specialty chemicals is currently a Zacks Rank #2 (Buy) and holds "A" grades for Value and Growth, as well as a "B" for Momentum. Huntsman Corporation has also met or matched earnings estimates in the trailing 11 periods, with an average earnings surprise of 32.72% over the last four quarters.

Huntsman currentlyowns an Earnings ESP of 2.22%, which means recent earnings estimates have been higher. The firm is also expected to see its fourth-quarter earnings pop 120% to hit $0.66 per share.

Huntsman is set to report its Q4 and fiscal full-year earnings before the opening bell this Friday, Feb. 23.

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


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

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