Should You Buy Apollo Global Management (APO) Ahead of Earnings?

Should You Buy Apollo Global Management (APO) Ahead of Earnings?


Shutterstock photo

Investors are always looking for stocks that are poised to beat at earnings season and Apollo Global Management, LLCAPO may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Apollo Global is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings – with the most up-to-date information possible – is a pretty good indicator of some favorable trends underneath the surface for APO in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at 67 cents per share for APO, compared to a broader Zacks Consensus Estimate of 65 cents per share. This suggests that analysts have very recently bumped up their estimates for APO, giving the stock a Zacks Earnings ESP of +3.61% heading into earnings season.

Apollo Global Management, LLC Price and EPS Surprise

Apollo Global Management, LLC Price and EPS Surprise | Apollo Global Management, LLC Quote

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 Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here ).

Given that APO has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Clearly, recent earnings estimate revisions suggest that good things are ahead for Apollo Global, and that a beat might be in the cards for the upcoming report.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it’s predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks’ 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Apollo Global Management, LLC (APO): Free Stock Analysis Report

To read this article on Zacks.com click here.

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


Referenced Symbols: APO

Post a Comment