Looking for a stock that might be in a good position to beat earnings at its next report? Consider HomeAway, Inc. (AWAY), a firm in the leisure and recreational services industry, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, AWAY has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, AWAY expected to earn 5 cents per share, while it actually produced earnings of 7 cents per share, a beat of 40%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 5 cents per share, when it actually saw earnings of 6 cents per share instead, representing a 20% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for HomeAway. In fact, the Earnings ESP for AWAY is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for AWAY, as the firm currently has a Zacks Earnings ESP of 14.29%, so another beat could be around the corner.
This is particularly true when you consider that AWAY has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that AWAY could see another beat at its next report, especially if recent trends are any guide.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment