Earnings season is just around the corner, and two financial heavyweights—CME Group (CME) and Travelers Companies (TRV)—are catching the attention of investors. Both stocks are displaying positive Zacks Earnings ESP (Expected Surprise Prediction) figures, signaling the potential for earnings beats when they report in April.
CME Group: Strong Financial Momentum
CME Group, a leading derivatives marketplace, is scheduled to announce its Q1 2025 earnings on April 23. Analysts’ Most Accurate Estimate for the quarter stands at $2.64 per share, slightly higher than the Zacks Consensus Estimate of $2.61, resulting in an Earnings ESP of 1.46%.
With a Zacks Rank #2 (Buy), CME’s positive ESP suggests that the company may deliver a stronger-than-expected performance, which could boost investor sentiment.
Travelers: Positioned for a Bigger Surprise
Travelers, a major insurance provider, will release its Q1 earnings on April 16. The stock currently holds a Zacks Rank #3 (Hold), but its Most Accurate Estimate of $0.60 per share tops the Zacks Consensus Estimate of $0.57, yielding a 5.68% Earnings ESP. This significantly higher ESP hints at a stronger likelihood of an earnings beat, which could drive short-term price appreciation.
Why It Matters
Earnings ESP is a widely used metric that compares the most recent and accurate estimates against the broader consensus. A positive ESP figure is often viewed as a signal that analysts have become more optimistic ahead of the earnings release, making a surprise beat more probable.
For investors, CME Group and Travelers are worth keeping on the watchlist as they head into their earnings reports. Positive surprises could create attractive short-term trading opportunities or strengthen long-term confidence in these financial giants.
