On the lookout for a inventory that has been constantly beating earnings estimates and is likely to be nicely positioned to maintain the streak alive in its subsequent quarterly report? Progress Software program (PRGS), which belongs to the Zacks Laptop – Software program trade, may very well be an important candidate to think about.
This enterprise software program maker has seen a pleasant streak of beating earnings estimates, particularly when trying on the earlier two experiences. The common shock for the final two quarters was 11.80%.
For the latest quarter, Progress Software program was anticipated to put up earnings of $0.95 per share, but it surely reported $1.04 per share as a substitute, representing a shock of 9.47%. For the earlier quarter, the consensus estimate was $0.85 per share, whereas it really produced $0.97 per share, a shock of 14.12%.
Value and EPS Shock
With this earnings historical past in thoughts, current estimates have been shifting increased for Progress Software program. In truth, the Zacks Earnings ESP (Anticipated Shock Prediction) for the corporate is optimistic, which is a good signal of an earnings beat, particularly if you mix this metric with its good Zacks Rank.
Our analysis reveals that shares with the mixture of a optimistic Earnings ESP and a Zacks Rank #3 (Maintain) or higher produce a optimistic shock practically 70% of the time. In different phrases, when you’ve got 10 shares with this mix, the variety of shares that beat the consensus estimate may very well be as excessive as seven.
The Zacks Earnings ESP compares the Most Correct Estimate to the Zacks Consensus Estimate for the quarter; the Most Correct Estimate is a model of the Zacks Consensus whose definition is said to alter. The thought right here is that analysts revising their estimates proper earlier than an earnings launch have the most recent data, which might doubtlessly be extra correct than what they and others contributing to the consensus had predicted earlier.
Progress Software program has an Earnings ESP of +0.26% in the meanwhile, suggesting that analysts have grown bullish on its near-term earnings potential. Whenever you mix this optimistic Earnings ESP with the inventory’s Zacks Rank #3 (Maintain), it reveals that one other beat is presumably across the nook.
When the Earnings ESP comes up destructive, traders ought to be aware that this can cut back the predictive energy of the metric. However, a destructive worth shouldn’t be indicative of a inventory’s earnings miss.
Many firms find yourself beating the consensus EPS estimate, however that is probably not the only foundation for his or her shares shifting increased. However, some shares might maintain their floor even when they find yourself lacking the consensus estimate.
Due to this, it is actually essential to verify an organization’s Earnings ESP forward of its quarterly launch to extend the chances of success. Ensure to make the most of our Earnings ESP Filter to uncover the most effective shares to purchase or promote earlier than they’ve reported.
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Progress Software program Company (PRGS) : Free Inventory Evaluation Report
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