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

Core Insights - Long-term stock prices are primarily influenced by earnings and interest rates, with earnings results being a focal point for investors [1] - Earnings surprises, whether positive or negative, can significantly impact stock performance, making it essential for investors to monitor these closely [1] Group 1: Earnings ESP Overview - The Zacks Earnings ESP (Expected Surprise Prediction) utilizes the most recent analyst earnings revisions, which are believed to be more accurate than earlier estimates [2] - The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference yielding the ESP figure [2] - Stocks with a positive earnings ESP and a Zacks Rank of 3 (Hold) or better have historically reported positive earnings surprises 70% of the time, leading to an average annual return of 28.3% based on a 10-year backtest [2] Group 2: Stock Analysis - Lantheus Holdings - Lantheus Holdings (LNTH) currently holds a 3 (Hold) ranking and is set to report earnings on February 22, 2024, with a Most Accurate Estimate of $1.53 per share [4] - The Earnings ESP for Lantheus Holdings is +6.27%, calculated from the difference between the Most Accurate Estimate of $1.53 and the Zacks Consensus Estimate of $1.44 [4] - Lantheus is part of a larger group of medical stocks with positive ESP figures, indicating a favorable outlook for potential earnings surprises [4] Group 3: Stock Analysis - Exact Sciences - Exact Sciences is scheduled to report earnings on February 20, 2024, and holds a 3 (Hold) ranking, with a Most Accurate Estimate of -$0.50 per share [5] - The Earnings ESP for Exact Sciences stands at +5.66%, derived from the difference between its Most Accurate Estimate of -$0.50 and the Zacks Consensus Estimate of -$0.53 [5] - Both Lantheus Holdings and Exact Sciences exhibit positive ESP figures, suggesting a strong likelihood of exceeding analyst expectations in their upcoming earnings reports [5]