Investors can boost their portfolios by focusing on retail-wholesale stocks that are set to beat earnings. Two factors determine stock prices in the long run: earnings and interest rates. Earnings surprises are crucial for stock prices, especially in the near-term. The Zacks Expected Surprise Prediction (ESP) is a useful tool to identify stocks with the highest probability of positively surprising. Wingstop and AutoZone are two stocks with a positive ESP figure, indicating a potential earnings beat in their next reports.
Investors can enhance their portfolios by focusing on retail-wholesale stocks that are expected to post earnings surprises. Two crucial factors that influence stock prices in the long run are earnings and interest rates. Earnings surprises, particularly in the near term, play a significant role in determining stock prices. The Zacks Expected Surprise Prediction (ESP) is a valuable tool for identifying stocks with the highest probability of positively surprising the market.
McDonald's (MCD) and Etsy (ETSY) are two retail-wholesale stocks that currently hold a positive ESP figure, indicating a potential earnings beat in their upcoming reports. McDonald's, with a Zacks Rank #3, has an ESP of +0.63%, calculated by comparing its Most Accurate Estimate of $3.16 a share with the Zacks Consensus Estimate of $3.14 [1]. Etsy, ranked #2 (Buy) on the Zacks Rank, has an ESP of +14.19%, based on its Most Accurate Estimate of $0.6 a share compared to its Zacks Consensus Estimate of $0.53 [1].
AutoZone (AZO) is another retail-wholesale stock that has gained attention due to its recent analyst upgrades. The company reported earnings per share (EPS) of $35.36 for the quarter, missing analysts' consensus estimates of $37.07 by ($1.71) [3]. Despite the miss, AutoZone has seen a significant increase in analyst ratings, with several firms upgrading their recommendations to "buy" or "strong buy" [3]. The company's stock has also seen increased institutional ownership, with institutional investors and hedge funds owning 92.74% of the company's stock [3].
Investors should consider these factors when evaluating retail-wholesale stocks for potential earnings surprises. By focusing on stocks with a positive ESP figure and favorable analyst ratings, investors can position themselves to benefit from earnings beats and enhance their portfolios.
References:
[1] https://finance.yahoo.com/news/boost-portfolio-top-retail-wholesale-130003527.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TB0P8:0-resources-connection-inc-expected-to-post-a-loss-of-1-cent-a-share-earnings-preview/
[3] https://www.marketbeat.com/instant-alerts/filing-autozone-inc-nyseazo-shares-sold-by-state-of-michigan-retirement-system-2025-07-12/
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