Looking for a stock that continues to beat earnings estimates and can be well positioned to keep alive the consecutive quarterly report? Newmark Group (NMRK), which belongs to the Zacks Real Estate – Operations industry, could be a good candidate to consider.
This provider of commercial real estate services has an established record of the above earnings estimates, especially when looking at the previous two reports. The company boasts a surprise average for the past two quarters of 38.02%.
For the most recent quarter, Newmark Group was expected to post earnings of $ 0.37 per share, but instead it reported $ 0.50 per share, representing a surprise 35.14%. For the previous quarter, the consensus estimate was $ 0.22 per share, while it actually made $ 0.31 per share, a surprise 40.91%.
Price and EPS Surprise
Considering the history of these earnings, recent estimates are moving higher for the Newmark Group. In fact, Zacks Earnings ESP (Expected Surprise Prediction) is positive for the company, which is a good sign of a beat of earnings, especially when you combine this metric with good Zacks Rank.
Our research shows that stocks with a combination of positive Earnings ESP and Zacks Rank #3 (Hold) or better produce positive surprises almost 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks to beat in the consensus estimate can be as high as seven.
Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts who revise their estimates before earnings are released have the latest information, which is likely to be more accurate than they and other contributors to the consensus predicted earlier.
Newmark Group currently has Earnings ESP of +8.75%, suggesting that analysts have been bullish recently on the company’s earnings prospects. This positive Earnings ESP when combined with the stock’s Zacks Rank #1 (Strong Buy) indicates that another beat is possibly near. We expect the company’s next earnings report to be released on February 11, 2022.
Using the Earnings ESP metric, it is important to note that a negative value reduces its predictive power; however, a negative ESP of Earnings does not indicate an unearned income.
Many companies end up estimating consensus EPS, even if that’s not the only reason their shares get up. Additionally, some stocks may remain stable even if they are missing the consensus estimate.
Because of this, it’s really important to review the company’s Earnings ESP prior to its quarterly release to increase the likelihood of success. Be sure to use our Earnings ESP Filter to find out the best stocks to buy or sell before they report.
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Newmark Group, Inc. (NMRK): Free Stock Analysis Report
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