Investors are always looking for stocks that are about to beat in earnings season and Bank of Montreal BMO can be one of these companies. The company has profits to come very soon, and events are preparing quite well for their report.
This is because the Bank of Montreal has been experiencing favorable earnings estimate revision activity recently, which is usually a precursor to a profit beat. After all, analysts raising their estimates just ahead of earnings – with the most up-to-date information possible – are a pretty good indicator of some beneath the surface favorable trends for BMO in this report.
In fact, the most accurate estimate for the current quarter is currently $ 2.13 per share for BMO, compared to Zacks’ broader consensus estimate of $ 2.10 per share. This suggests that analysts very recently revised their estimates for BMO upwards, giving the stock a + 1.39% ESP earnings Zacks as the earnings season approaches.
Bank of Montreal and BPA Surprise Award
Price-EPS-Surprise Bank of Montreal | Bank of Montreal quote
Why is this important?
A positive reading for 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 ESP Profit and a Zacks Rank # 3 (Hold) or better show positive surprise almost 70% of the time, and have returned over 28% on average in annual returns. (see Continuation Top income ESP stocks here).
Since BMO has Zacks # 2 (buy) rank and ESP in positive territory, investors might want to consider this stock before earnings. You can see The full list of current Zacks # 1 Rank (Strong Buy) stocks here.
Clearly, recent revisions to earnings estimates suggest that good things are ahead for the Bank of Montreal and that a beat may be in the cards for the next report.
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