Looking for a stock that might be in a good position to beat earnings at its next report? Consider GAIN Capital Holdings, Inc. GCAP, a firm in the investment banking 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, GCAP has beaten estimates by at least 40% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, GCAP expected to earn 9 cents per share, while it actually produced earnings of 13 cents per share, a beat of 44.4%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 7 cents a share, when it actually saw earnings of 13 cents a share instead, representing a 85.7% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for GAIN Capital. In fact, the Earnings ESP for GCAP 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 GCAP, as the firm currently has a Zacks Earnings ESP of 25%, so another beat could be around the corner.
This is particularly true when you consider that GCAP has a great Zacks Rank #1 (Strong 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 GCAP could see another beat at its next report, especially if recent trends are any guide.
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GAIN CAP HLDGS GCAP: Free Stock Analysis Report
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Earnings in Focus
Two quarters ago, GCAP expected to earn 9 cents per share, while it actually produced earnings of 13 cents per share, a beat of 44.4%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 7 cents a share, when it actually saw earnings of 13 cents a share instead, representing a 85.7% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for GAIN Capital. In fact, the Earnings ESP for GCAP 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 GCAP, as the firm currently has a Zacks Earnings ESP of 25%, so another beat could be around the corner.
This is particularly true when you consider that GCAP has a great Zacks Rank #1 (Strong 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 GCAP 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 >>
GAIN CAP HLDGS GCAP: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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