Stocks With the Largest Percentage Change in Earnings Estimates

The 15 stocks with the largest positive (and negative) percentage changes to their consensus earnings estimates for the current fiscal year.

Earnings are a key variable used to value stocks. Slight changes in expectations of future earnings or the earnings growth rate normally translate into a significant and lasting impact on stock prices.

While the price impact of the revision can be felt immediately, the effect of a revision can take up to year to be fully reflected in the price.

Not surprisingly, large firms tend to adjust to revisions more quickly than small firms.

We have two groups of stocks for this issue’s First Cut: stocks with the largest percentage revision up in their current fiscal-year consensus estimates, and stocks with the largest downward revisions. These screens made the top of performance lists in our annual AAII Stock Screens Review.

Stocks passing the upward revisions screen are tracked by at least four analysts and within the past month have had upward revisions of their consensus mean estimates for the current and next fiscal year.

The screen also requires that no analysts lowered their estimates for the current or next fiscal year during the past month.

Stocks passing the downward revisions screen are tracked by at least four analysts and have had downward revisions of their consensus mean estimates for the current and next fiscal year within the past month.

The screen also requires that no analysts raised their estimates for the current or next fiscal year during the past month.

Only the 15 stocks with the largest positive (and negative) percentage changes over the last month for this year’s expected earnings per share forecast made the First Cut.

The First Cut listing also provides the range of estimates for the next fiscal year, the number of analysts providing estimates for next year, and the number of analysts that revised their estimate upward during the past month.

Stocks With Largest Estimate Revisions