Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Transportation Names

Earnings and Stock Performance - Earnings and interest rates are two key factors determining stock prices in the long run, with earnings being a controllable focus for investors [2] - A company's performance relative to earnings expectations is crucial for stock prices, especially in the near-term, making earnings surprises a potential opportunity [2] - Stocks with a positive earnings ESP and Zacks Rank 3 (Hold) or stronger have a 70% chance of posting a positive bottom-line surprise and have historically delivered ~28% annual returns on average [6] Zacks Earnings ESP - The Zacks Earnings ESP (Expected Surprise Prediction) identifies stocks likely to outperform earnings expectations by comparing the Most Accurate Estimate to the Zacks Consensus Estimate [4][5] - A positive ESP indicates a higher likelihood of beating analyst expectations, as seen with Southwest Airlines (+5 35%) and Copa Holdings (+1 95%) [8][11] Stock Analysis - Southwest Airlines (LUV) has a Zacks Rank 2 (Buy), a Most Accurate Estimate of $0 45/share, and is 16 days away from its next earnings report on January 30, 2025 [7] - Copa Holdings (CPA) holds a Zacks Rank 3 (Hold), a Most Accurate Estimate of$3 95/share, and is 22 days away from its earnings release on February 5, 2025 [10] - Both LUV and CPA are part of a large group of Transportation stocks with positive ESP figures, suggesting a good chance of beating earnings expectations [7][11] Zacks Rank Performance - Zacks Rank 3 (Hold) stocks, representing 60% of all covered stocks, are expected to perform in-line with the broader market [9] - Zacks Rank 2 (Buy) and 1 (Strong Buy) stocks, representing the top 15% and top 5% of stocks, respectively, are expected to outperform the market, with Strong Buy stocks outperforming the most [9]