by David Aurelio.
The StarMine team has selected five North American companies, using Thomson Reuters’ Eikon Screener, that we expect to miss 17Q4 earnings estimates, based on SmartEstimate® and Predicted Surprise data.
Our North American selections for 2017 Q3 misses were 41.2 percentage points above the S&P 500’s 17Q3 earnings miss rate, which can be seen here. Historically (since 2011 Q4), our negative Predicted Surprise picks have demonstrated an accuracy rate of about 64.4%, giving investors an edge ahead of earnings announcements.
Our North American picks for negative Predicted Surprises in 2017 Q4 are — PG&E Corp (PCG.N), Expedia Inc (EXPE.O), Discovery Communications Inc (DISCK.O), TransAlta Corp (TA.TO), GTT Communications Inc (GTT.N).
SmartEstimates® aim to provide earnings forecasts that are more accurate than I/B/E/S Consensus Estimates, by putting more weight on the recent forecasts of top-rated analysts. When SmartEstimates® diverge significantly from Consensus, you can anticipate the occurrence of earnings surprises with an accuracy rate of 70%. Revenue SmartEstimates® are even more predictive of surprises, with a historical accuracy rate of 78%.
PG&E Corp (PCG.N)
Expedia Inc (EXPE.O)
Discovery Communications Inc (DISCK.O)
TransAlta Corp (TA.TO)
GTT Communications Inc (GTT.N)
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Which 5 North American companies does our StarMine team predict will beat 17Q4 earnings expectations? Find out here.