Looking for a stock that might be in a good position to beat earnings at its next report? Consider Diplomat Pharmacy, Inc. (NYSE:DPLO) , a firm in the Retail - Pharmacies and Drug Stores 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, DPLO has beaten estimates by at least 60% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, DPLO expected to post earnings of 15 cents per share, while it actually produced earnings of 25 cents per share, a beat of 66.7%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 15 cents per share, when it actually delivered earnings of 25 cents per share, representing 66.7% positive surprise.
Diplomat Pharmacy, Inc. Price and EPS Surprise
Thanks in part to this history, recent estimates have been moving higher for Diplomat Pharmacy. In fact, the Earnings ESPfor DPLO 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 DPLO, as the firm currently has a Zacks Earnings ESP of +0.34%, so another beat could be around the corner.
This is particularly true when you consider that DPLO has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 DPLO could see another beat at its next report, especially if recent trends are any guide.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
Diplomat Pharmacy, Inc. (DPLO): Free Stock Analysis Report
Original post