With earnings season coming to an end, there's bound to be a few reporting companies that'll blow away analyst expectations. But how do you identify the companies that might report significant earnings surprises?
One way is to look at what insider executives are doing -- if they are using their own money to buy the shares of their employers, it may signal that they think earnings estimates are too pessimistic.
To compile this list, we started with a universe of about 200 companies reporting earnings next week.
We then collected data on insider transactions, and identified the companies that have had the largest increases in insider ownership over the last six months.
These insiders seem to think their companies are being underestimated -- will upcoming earnings result reflect insider optimism?
List sorted by the change in insider ownership. Insider trading data sourced from Yahoo! Finance. (Click here to access free, interactive tools to analyze these ideas.)
1. Myrexis
2. Prospect Capital
3. Dynavox
4. SWS Group
5. First Clover Leaf Financial
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Eben Esterhuizen does not own any of the shares mentioned above.