Exelixis(US:EXEL) ZACKS·2024-11-19 13:20Core Insights - Investors are actively seeking stocks that can outperform market expectations ahead of earnings season, focusing on high-quality stocks [1] - Positive earnings surprises are crucial as stocks often decline if they miss or only meet expectations, regardless of nominal earnings growth [2][3] - A significant earnings surprise can lead to a substantial increase in stock prices immediately following the earnings release [4] Earnings Surprise Importance - Companies with a history of positive earnings surprises are more likely to continue this trend, making them attractive to investors [5][6] - Analysts project earnings based on financials and company guidance, and beating these estimates is seen as a strong indicator of performance [3][4] Screening Criteria for Stocks - Stocks with a last EPS surprise of at least 10% are more likely to surprise again [7] - An average EPS surprise of over 20% in the last four quarters indicates strong performance [7] - A consistent surprise history is suggested by an average EPS surprise of over 20% in the last two quarters [8] - Additional criteria include a Zacks Rank of 1 or 2 and a positive Earnings ESP to increase the likelihood of a positive surprise [9] Long-term Growth Potential - Stocks with an estimated EPS growth of over 10% per year for the next 3-5 years indicate strong long-term growth prospects [11] - High trading volume, defined as an average of over 100,000 shares in 20 days, suggests adequate liquidity [11] Selected Stocks - Amazon.com (AMZN) has a Zacks Rank of 1 and an average earnings surprise of 25.85% over the past four quarters [13][14] - Maplebear Inc. (CART) has a Zacks Rank of 2 with an impressive average earnings surprise of 442.44% [14] - Exelixis (EXEL), also with a Zacks Rank of 2, shows an average earnings surprise of 26.52% [15] - Doximity (DOCS) holds a Zacks Rank of 1 and has an average earnings surprise of 22.12% [16]