Investors are constantly on the lookout for stocks that are poised to outperform during earnings season, and Orchestra BioMed Holdings, Inc. (OBIO) may be one such company. The firm’s earnings are due soon, and conditions are aligning favorably for their report.
Orchestra BioMed is experiencing positive earnings estimate revisions recently, which is typically a sign of an impending earnings beat. Analysts raising estimates just before earnings, with the latest information at their disposal, is a strong indicator of underlying positivity for OBIO in this report.
At present, the Most Accurate Estimate for the current quarter stands at a loss of 34 cents per share for OBIO, compared to a broader Zacks Consensus Estimate of a loss of 40 cents per share. This indicates that analysts have recently raised their estimates for OBIO, bestowing the stock with a Zacks Earnings ESP of +14.29% going into earnings season.
The Significance of Earnings ESP
A favorable Zacks Earnings ESP has demonstrated great potency in yielding positive surprises and outperforming the market. Our recent 10-year backtest exhibits that stocks with a positive Earnings ESP and a Zacks Rank #3 (Hold) or better have a nearly 70% chance of achieving a positive surprise and have recorded average annual returns of over 28% (see more Top Earnings ESP stocks here).
With OBIO holding a Zacks Rank #3 and an ESP in positive territory, investors may want to consider this stock ahead of earnings. You can view the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions indicate that Orchestra BioMed is on the cusp of positive developments, and a positive earnings surprise may very well be in the offing for the upcoming report.
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Orchestra BioMed Holdings, Inc. (OBIO) : Free Stock Analysis Report
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