Is a Surprise Coming for Abercrombie & Fitch (ANF) This Earnings Season?
Abercrombie & Fitch (ANF) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Investors are always looking for stocks that are poised to beat at earnings season and Abercrombie & Fitch Co. ANF may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Abercrombie & Fitch is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ANF in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 79 cents per share for ANF, compared to a broader Zacks Consensus Estimate of 75 cents per share. This suggests that analysts have very recently bumped up their estimates for ANF, giving the stock a Zacks Earnings ESP of +4.93% heading into earnings season.
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that ANF has a Zacks Rank #1 (Strong Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Abercrombie & Fitch, and that a beat might be in the cards for the upcoming report.
Tech IPOs With Massive Profit Potential
In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.
For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…
If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.
With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.See Zacks Hottest Tech IPOs Now >>
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
Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
To read this article on Zacks.com click here.