As we move through earnings season, a positive surprise from a company can push its stock up substantially. But how can you tell in advance whether a stock you own is likely to benefit from an earnings surprise?
Past performance may not guarantee future results, but companies that have delivered a string of earnings beats are logical candidates for producing further positive results. So I took a look at the 30 stocks in the Dow Jones Industrials
Nearly a dozen stocks have beat analysts' earnings expectations for four straight quarters. But many of them only top the estimates by the narrowest of margins. So let's focus on the stocks that beat estimates by the widest average margins.
Coming in at No. 2 is DuPont
Next is Intel
Finally, Cisco Systems
Why earnings are important
Earnings are a key component of a stock's value, so you have to stay aware of what your stocks are doing on the earnings front. In its brand-new special report, The Motley Fool has identified five stocks that investors simply have to watch this earnings season. The report is free, so let me invite you to click here and get the scoop before these companies report.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter here. The Motley Fool owns shares of Cisco Systems and Intel. Motley Fool newsletter services have recommended buying shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.