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Why the Earnings Streak Will Continue for Jernigan Capital (JCAP)

Zacks

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Jernigan Capital, Inc. JCAP, a firm in the REIT-Mortage Trust industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, JCAP has beaten estimates significantly in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, JCAP expected to post a loss of 7 cents per share, while it actually produced earnings of 51 cents per share, making a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 26 cents per share, when it actually earnings of 89 cents per share instead, marking another considerable positive surprise.

JERNIGAN CAPITL Price and EPS Surprise


JERNIGAN CAPITL Price and EPS Surprise | JERNIGAN CAPITL Quote

Thanks in part to this history, recent estimates have been moving higher for Jernigan Capital. In fact, the Earnings ESP for JCAP is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for JCAP, as the firm currently has a Zacks Earnings ESP of 34.29%, so another beat could be around the corner.

This is particularly true when you consider that JCAP has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that JCAP could see another beat at its next report, especially if recent trends are any guide.

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