Investors are always looking for stocks that are poised to beat at earnings season and First Financial Bankshares, Inc. FFIN 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 First Financial Bankshares 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 FFIN in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 28 cents per share for FFIN, compared to a broader Zacks Consensus Estimate of 24 cents per share. This suggests that analysts have very recently bumped up their estimates for FFIN, giving the stock a Zacks Earnings ESP of +16.20% heading into earnings season.
First Financial Bankshares, Inc. Price and EPS Surprise
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 FFIN has a Zacks Rank #2 (Buy) 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 First Financial Bankshares, and that a beat might be in the cards for the upcoming report.
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First Financial Bankshares, Inc. (FFIN): Free Stock Analysis Report
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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.