How to Find Strong Basic Materials Stocks Slated for Positive Earnings Surprises NYSE:X, NYSE:CLF, Benzinga, Jim Cramer, Cleveland-Cliffs, Zacks Earnings ESP, United States Steel - by https://www.benzinga.com/

AI Insights:

Simple Explanation:

This article talks about how to find good companies that make things like steel and mines. These companies can sometimes do better than people expect in their earnings reports, which are important papers that show how much money they made or lost. The article says there is a tool called Zacks Earnings ESP that helps people find these good companies before their earnings reports come out. Read from source...

Critical Perspective:

- The author of the article does not provide any evidence or data to support their claim that identifying stocks that are likely to top quarterly earnings expectations can be profitable. This is a vague and unsubstantiated statement that relies on anecdotal examples or common knowledge, which may not apply to all cases or situations.
- The author also does not explain how the Zacks Earnings ESP filter works or what criteria it uses to select stocks with positive earnings surprises. This is a crucial detail that investors would need to know before using this tool, as well as its accuracy and reliability in predicting future performance.
- The author uses emotional language and phrases such as "play a vital role", "help investors see how a company has performed" and "what might be coming down the road in the near-term". These words imply that the earnings reports are essential for decision making and that they reveal some kind of hidden or urgent information, which may not be true or objective.
- The author does not address any potential drawbacks or risks associated with chasing earnings surprises, such as market volatility, inflation, liquidity, valuation, or regulatory changes. These factors could affect the performance and value of the stocks selected by the Zacks Earnings ESP filter, and investors should be aware of them before making any investment decisions based on this tool.
- The author also does not provide any examples of successful or unsuccessful trades using the Zacks Earnings ESP filter, nor does he compare it to other similar tools or methods available in the market. This makes it hard for readers to evaluate the effectiveness and value of this tool, as well as its suitability for their own investment goals and preferences.