Looking for a stock that might be in a good position to beat earnings at its next report? Consider Fate Therapeutics, Inc. FATE, a firm in the Medicine–Biomedicine/Genetic 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, FATE has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, FATE expected to post a loss of 37 cents per share, while it actually produced a loss of 33 cents per share, a beat of 10.8%. Meanwhile, for the most recent quarter, the company looked to post a loss of 32 cents per share, when it actually saw loss of 24 cents per share instead, representing a positive surprise of 25%.
Thanks in part to this history, recent estimates have been moving higher for Fate Therapeutics. In fact, the Earnings ESP for FATE 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 FATE, as the firm currently has a Zacks Earnings ESP of 3.70%, so another beat could be around the corner.
This is particularly true when you consider that FATE 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 FATE could see another beat at its next report, especially if recent trends are any guide.
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