Will Telus (TU), Beat Again Estimates in Its Next Earnings Survey?
You are looking for a stock that consistently beats earnings estimates and could be well placed to continue this streak in its next quarter’s report. Telus (TU), which is part of the Zacks Diversified Communication Services sector, might be worth considering.
This telecommunications company has had a good streak of beating earnings estimates, especially if you look at the two previous reports. 8.82% was the average surprise over the two previous quarters.
Telus posted earnings of $0.26 per stock in the most recent quarter, versus $0.25 per share according to the Zacks Consensus Estimate. This is a surprise by 4%. The company had expected earnings of $0.22 per stock, but it actually earned $0.25 per share. This surprise was 13.64%.
Surprise Price and EPS
This history is partly responsible for the recent positive change in earnings estimates of Telus. 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 compares most accurate estimates to the Zacks Consensus Estimate. For the quarter, the Most Accurate Estimate refers to a Zacks Consensus version that is subject to change. This is because analysts who revise their estimates before earnings releases have the most current information. It could be that this could prove to be more accurate than what others contributed to the consensus.
Telus has an EarningsESP of +1.57% at the moment, which indicates that analysts are now bullish about the company’s prospects. Combining this positive Earnings ESP with the stock’s Zacks Rank 3 (Hold), suggests that another beat could be just around the corner.
Investors should take note of the fact that if Earnings ESP turns negative, it will lower the predictive power. However, a negative Earnings ESP value does not necessarily indicate that a stock is missing its earnings.
Although many companies surpass the consensus EPS estimate and their stock prices rise, it may not be the only reason. Some stocks might hold their ground, even if they miss the consensus estimate.
It is important to verify a company’s Earnings ESP prior to its quarterly release. This will increase the chances of success. To find the best stocks for buying or selling, use our Earnings ESP filter.
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TELUS Corporation (TU) : Free Stock Analysis Report