Looking for a stock that might be in a good position to beat earnings at its next report? Consider American Public Education, Inc. APEI , a firm in the Schools 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, APEI has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, APEI expected to post earnings of 21 cents per share, while it actually produced earnings of 27 cents per share, a beat of 28.6%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 33 cents per share, when it actually delivered earnings of 51 cents per share, representing 54.5% positive surprise.
American Public Education, Inc. Price and EPS Surprise
Thanks in part to this history, recent estimates have been moving higher for American Public Education. In fact, the Earnings ESP for APEI 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 APEI, as the firm currently has a Zacks Earnings ESP of +3.96%, so another beat could be around the corner.
This is particularly true when you consider that APEI has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today's Zacks #1 Rank stocks here .
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 APEI could see another beat at its next report, especially if recent trends are any guide.
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