Should you buy Northern Trust (NTRS) ahead of earnings?

Investors are always on the lookout for stocks that are ready to beat in earnings season and Northern Trust Company NTRS may be one of these companies. The company has earnings coming very soon, and the events are gearing up pretty well for their report.

Indeed, Northern Trust has recently seen favorable earnings estimate revision activity, which is usually a precursor to an earnings beat. After all, analysts raising estimates just before earnings — with the most recent information possible — are a pretty good indicator of some favorable trends below the surface for NTRS in this report.

In fact, the most accurate estimate for the current quarter is currently above Zacks’ broader consensus estimate of $1.82 per share. This suggests that analysts have very recently raised their estimates for NTRS, giving the stock a Zacks Earnings ESP of +0.09% heading into earnings season.

Northern Trust Corporation Award and EPS Surprise

Northern Trust Corporation price-eps-surprise | Quote from the Northern Trust Company

Why is this important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive ESP on earnings and a Zacks rank of #3 (Hold) or better show a positive surprise nearly 70% of the time and have returned more than 28% on average in annual returns (see more ESP Top Earnings stocks here).

Given that NTRS has a Zacks rank of No. 3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent revisions to earnings estimates suggest good things are ahead for Northern Trust and a beatdown could be in the cards for the next report.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.