Why Investors Need to Take Advantage of These 2 Aerospace Stocks Now

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.Should You Consider FTAI Aviation?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. FTAI Aviation (FTAI) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.90 a share, just 13 days from its upcoming earnings release on February 26, 2025.FTAI Aviation's Earnings ESP sits at +8.16%, which, as explained above, is calculated by taking the percentage difference between the $0.90 Most Accurate Estimate and the Zacks Consensus Estimate of $0.83. FTAI is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.FTAI is one of just a large database of Aerospace stocks with positive ESPs. Another solid-looking stock is TransDigm Group (TDG).TransDigm Group is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 6, 2025. TDG's Most Accurate Estimate sits at $8.87 a share 82 days from its next earnings release.The Zacks Consensus Estimate for TransDigm Group is $8.85, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.29%.Because both stocks hold a positive Earnings ESP, FTAI and TDG could potentially post earnings beats in their next reports.Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>Should You Invest in FTAI Aviation Ltd. (FTAI)?Before you invest in FTAI Aviation Ltd. (FTAI), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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 FTAI Aviation Ltd. (FTAI): Free Stock Analysis Report Transdigm Group Incorporated (TDG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks