These 2 Basic Materials Stocks Could Beat Earnings: Why They Should Be on Your Radar

Group 1 - The long-term stock prices are primarily influenced by earnings and interest rates, with investors focusing on quarterly earnings results to capture stronger returns [1] - Positive earnings surprises can lead to rewards for investors, while falling short of expectations can have negative consequences [1] - The Zacks Earnings ESP (Expected Surprise Prediction) helps identify stocks likely to exceed quarterly earnings expectations by comparing the Most Accurate Estimate to the Zacks Consensus Estimate [2] Group 2 - The Earnings ESP model shows that when a positive earnings ESP is combined with a Zacks Rank of 3 (Hold) or better, stocks have a 70% chance of posting a positive surprise, with an average annual return of approximately 28% over the past 10 years [2] - Stocks ranked 2 (Buy) and 1 (Strong Buy) are expected to outperform the market, with Strong Buy stocks showing the highest potential for outperformance [3] Group 3 - United States Steel (X) currently holds a 1 (Strong Buy) ranking, with a Most Accurate Estimate of $0.29 per share, resulting in an Earnings ESP of +42.5% compared to the Zacks Consensus Estimate of $0.20 [4] - International Paper (IP) has a Zacks Rank of 2 (Buy) and a Most Accurate Estimate of $0.35 per share, leading to an Earnings ESP of +1.74% against a Consensus Estimate of $0.34 [5] - Both United States Steel and International Paper have positive ESP figures, indicating a good chance of beating analyst expectations in their upcoming earnings reports [5]