Why Investors Need to Take Advantage of These 2 Medical Stocks Now

Zacks' Earnings ESP (Expected Surprise Prediction) methodology, which compares the Most Accurate Estimate to the Zacks Consensus Estimate, has historically identified stocks likely to beat quarterly earnings. When combined with a Zacks Rank #3 (Hold) or better, this strategy has predicted positive surprises 70% of the time and generated an average annual return of 28.3% over a decade. Currently, medical stocks Organon (OGN) and United Therapeutics (UTHR) are highlighted as potential earnings beat candidates, with positive ESPs of +1.40% and +3.05% respectively, ahead of their upcoming reports.

Analysis

Zacks' Earnings ESP (Expected Surprise Prediction) methodology, which compares the Most Accurate Estimate to the Zacks Consensus Estimate, has a historical ability to identify stocks likely to exceed quarterly earnings. Combined with a Zacks Rank of #3 (Hold) or better, this strategy has predicted positive earnings surprises 70% of the time, generating an average annual return of 28.3% over a 10-year backtest.

Currently, medical sector stocks Organon (OGN) and United Therapeutics (UTHR) are highlighted as potential candidates for positive earnings surprises. Organon (OGN), a Zacks Rank #3 stock, exhibits an Earnings ESP of +1.40% (Most Accurate Estimate $0.95 vs. Consensus $0.93) ahead of its October 30, 2025 release. United Therapeutics (UTHR), also a Zacks Rank #3, shows a higher ESP of +3.05% (Most Accurate Estimate $7.10 vs. Consensus $6.89) for its October 29, 2025 report.

The positive ESP figures for both OGN and UTHR suggest a higher probability of these companies reporting earnings above analyst consensus, potentially leading to positive stock price movements post-announcement. This aligns with the optimistic tone emphasizing the profitability of identifying such earnings beats, supported by the Zacks Rank system's long-term track record of outperforming the S&P 500.

Key Decisions for Investors

• Consider initiating or increasing positions in Organon (OGN) and United Therapeutics (UTHR) ahead of their respective earnings reports, given their positive Earnings ESPs and Zacks Rank #3 status, which historically correlates with a 70% chance of positive surprise.
• Monitor the actual earnings reports for Organon on October 30, 2025, and United Therapeutics on October 29, 2025, for confirmation of the predicted beats and subsequent market reaction.
• Evaluate the broader applicability of the Zacks Earnings ESP and Rank methodology for identifying other potential short-term trading opportunities around earnings season, leveraging its demonstrated historical efficacy.