How to Boost Your Portfolio with Top Finance Stocks Set to Beat Earnings
As the earnings season approaches, investors are actively seeking opportunities to enhance their portfolios, particularly in the finance sector. Quarterly financial reports are crucial as they reveal the performance of companies and provide insights into future expectations. An important focus during this time is on earnings surprises—companies that exceed analysts’ predictions often see their stock prices rise significantly.
The Importance of Earnings Surprises
On Wall Street, expectations drive the market. Companies that can report earnings above what analysts forecast are typically rewarded with higher stock prices. Conversely, those that fall short may face declines. Investors looking to optimize their returns can benefit from targeting stocks that are poised to exceed earnings estimates.
To identify such opportunities, the Zacks Earnings ESP (Expected Surprise Prediction) model can be particularly useful. This model highlights stocks based on recent adjustments to earnings estimates by analysts. If analysts revise their earnings expectations prior to a scheduled earnings release, it may indicate they possess new information that warrant a reassessment of the stock’s potential.
Notable Stocks to Watch
Two finance stocks that have emerged as strong candidates for potential earnings surprises are Toronto-Dominion Bank (TD) and Reinsurance Group of America (RGA).
Toronto-Dominion Bank (TD)
Currently holding a Zacks Rank of #3 (Hold), Toronto-Dominion Bank will announce its quarterly results on May 22, 2025. The bank’s Most Accurate Estimate stands at $1.22 per share, compared to the Zacks Consensus Estimate of $1.21. This gives TD an Earnings ESP of 1.1%, suggesting that the bank may surpass earnings expectations in its upcoming report.
Reinsurance Group of America (RGA)
Another stock to consider is Reinsurance Group of America, which is set to report earnings on August 7, 2025, also with a Zacks Rank #3. The Most Accurate Estimate for RGA is currently $5.66, while the Zacks Consensus Estimate is $5.63. This results in an Earnings ESP of 0.46%, indicating a similar potential for an earnings beat.
Both TD and RGA demonstrate positive Earnings ESPs, making them attractive options for investors looking to capture upward momentum in their portfolios.
Leveraging Earnings ESP for Investment Decisions
To maximize potential for returns during earnings season, investors should consider utilizing the Zacks Earnings ESP filter. This tool allows users to identify stocks with the highest likelihood of delivering positive or negative surprises, enabling them to make informed buying or selling decisions ahead of earnings reports.
For those interested in deepening their investment strategies, Zacks Investment Research offers additional resources, including stock recommendations tailored for the upcoming earnings cycle.
Conclusion
As investors gear up for the earnings season, monitoring financial stocks like Toronto-Dominion Bank and Reinsurance Group of America could prove beneficial. Both companies demonstrate promising Earnings ESP figures and may surprise the market with stronger-than-expected results. Keeping a close eye on these stocks may enhance investment portfolios as we approach critical reporting dates.
To explore more about these stocks and gain insights into potential market movements, consider accessing the latest reports and recommendations from Zacks Investment Research.
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