HHave you looked for a stock that might be well positioned to maintain its top earnings streak in its next report? Consider United States Steel (X), which belongs to Zacks Steel – Producers industry.

This steelmaker has a set record of exceeding profit estimates, especially when looking at the two previous reports. The company posted an average surprise for the last two quarters of 12.66%.

For the most recent quarter, US Steel was expected to post earnings of $ 3.16 per share, but instead reported $ 3.37 per share, which was a surprise of 6.65%. For the previous quarter, the consensus estimate was $ 0.91 per share, when it actually produced $ 1.08 per share, a surprise of 18.68%.

Price and EPS Surprise

Thanks in part to this story, there has been a favorable change in earnings estimates for US Steel in recent times. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of growing earnings, especially when combined with its strong Zacks Rank.

Our research shows that stocks with the combination of a positive ESP and Zacks Rank # 3 (Hold) or better produce a positive surprise almost 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that exceed the consensus estimate could reach seven.

Zacks Earnings ESP compares the most accurate estimate to Zacks’ consensus estimate for the quarter; the most accurate estimate is a Zacks consensus version whose definition is linked to change. The idea here is that analysts who revise their estimates just before the results are released have the latest information, which could potentially be more accurate than they and other consensus contributors predicted earlier.

US Steel has an ESP on earnings of + 17.63% at the moment, which suggests that analysts have become bullish on its near-term earnings potential. When you combine this positive earnings ESP with the stock’s Zacks (Buy) rank 2, it shows that another beat may be around the corner.

With the Earnings ESP metric, it is important to note that a negative value reduces its predictive power; however, a negative ESP on earnings does not indicate a shortfall.

Many companies end up beating the consensus EPS estimate, but that might not be the only reason their shares are rising. On the other hand, some titles can hold up even if they end up missing the consensus estimate.

For this reason, it is very important to check a company’s earnings PSE before it is published quarterly to increase the chances of success. Be sure to use our ESP Earnings Filter to uncover the best stocks to buy or sell before they get published.

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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.