Looking for income? Buy these 5 top stocks

Not surprisingly, before the earnings season, every investor is looking for shares that can overcome market expectations. This is because investors always try to reside in advance and strive to use high quality reserves.

In this regard we did a screen that gave the stock Agco Agco, Reddit Inc. Rddt, Extreme networks Ex. Sofi technology Sofi and Skywest Skyw overcame potential as expected profit winners.

Historically, companies with a solid quarterly earnings (nominal) reserve, if they spend or only meet market expectations. After all, the 20% increase in income (although apparently looks good) does not say whether income growth has shown a slowing trend.

Seasonal fluctuations sometimes occur. If the Q1 companies are seasonally weak and the quarter, a strong, is likely to report a consistent decline in income. In such cases, growth rates mislead the real health of the company.

On the other hand, after many companies’ financial and initiative analysis and analysis, Wall Street analysts from companies. They actually include their insights and the instructions of the company when they receive an estimate of earnings.

Thus, the output that this rating is almost equivalent to both the expectations of the company itself and the market perception. And if the earnings surprise is large, it usually increases the stock above immediately after the release. So, more than anything else, the earnings surprise can increase the shares.

Now the discovery of shares that can overcome the essence can be an investor’s dream, but not an easy job. One way to do so is to look at the story of the company’s surprise.

The impressive track usually acts as a catalyst for sending higher stocks. It shows the company’s ability to surpass the estimates. And investors usually believe that the company will apply the same secret sauce to perform another earning rhythm in another show.

In order to add stock to the list that will probably come up with a wage surprise, we have chosen these basic selection parameters.

Last EPS surprise greater than or equal to 10%: Shares that provide a positive surprise last quarter are again surprised.

Average EPS surprise in the last four quarters over 20%: We lifted the tape to exceed the performance slightly higher, setting the average income surprise for the last four quarters – 20%.

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