Why Comerica Incorporated, (CMA), is poised to beat Earnings Estimates Yet Again
You’ve been looking for a stock to continue its earnings-beat streak? Comerica Incorporated, (CMA), is an industry that belongs to the Zacks Banks Major Regional.
The company has had a good streak of exceeding earnings estimates, especially when compared to the two previous reports. Average surprise in the past two quarters was 4.8%.
Comerica Incorporated reported earnings of $2.60 per stock in the most recent quarter. This is a surprise at 1.17% compared to the Zacks Consensus Estimated of $2.57 per shares. The company had expected earnings of $1.77 per stock, but it actually earned $1.92 per share. This surprise was 8.47%.
Price and EPS Surprise
This history has contributed to a positive change in Earnings Estimates for Comerica Incorporated recently. The Zacks Earnings ESP for the stock is actually positive. This is a great indicator that the stock will beat earnings estimates, especially when it is paired with its solid Zacks Rank.
Our research has shown that stocks with a positive Earnings ESP combined with a Zacks Rank 3 (Hold) or higher produce a positive surprise almost 70% of the times. If you have 10 stocks that combine this combination, it could lead to seven stocks beating the consensus estimate.
The Zacks Earnings ESP compared the Most Accurate Estimate and the Zacks Consensus Estimate of the quarter. The Most Accurate Estimate, which is a version Zacks Consensus whose definition includes change, is the Zacks Consensus’ most accurate estimate. This means that analysts revising earnings estimates just before a release are updated with the most recent information. This could make their estimates more accurate than what other contributors to the consensus have predicted.
Comerica Incorporated currently boasts an EarningsESP value of +0.39%. This indicates that analysts are becoming more bullish on the company’s earnings prospects. Combining the positive Earnings ESP with the stock’s Zacks Rank 3 (Hold), suggests that another beat could be around the corner. The company’s next earnings report will be published on January 19, 2023.
Investors should be aware that if the Earnings ESP is negative, this will decrease the predictive power of the metric. A stock’s earnings are not affected by a negative value.
Although many companies surpass the consensus EPS estimate for their earnings, it is not the only reason that shares increase. Even if the consensus estimate is not met, stocks may still remain stable.
It is important to verify a company’s Earnings ESP prior to its quarterly release. This will increase your chances of success. To find the best stocks for buying or selling, use our Earnings ESP filter.
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