We are on the last leg of first-quarter earnings season. Per the latest Earnings Preview, already 409 S&P 500 members have reported financial results and the overall performance reflects many positive signs, buoying optimism among investors. The latest earnings scorecard highlights 24% increase in total earnings on 9.3% higher revenues. The beat ratio has been impressive as well with 78% companies surpassing bottom-line expectations and 75.6% beating the top-line mark.

The Medical sector (one of the 16 Zacks sectors) has put up a stellar show so far. It is projected to rise 13.6% on 8.3% revenue growth this earnings season.

What Awaits Medical Product Stocks?

Broadly speaking, the latest Tax Cuts and jobs Act has, has also raised hope among stakeholders, having slashed corporate tax rates to 21% from the earlier 35% among many other changes.

The Medical Product space, which is part of the broader Medical sector, has been hogging a lot of limelight on the back of certain favorable developments. The sector has been going strong, courtesy of encouraging demographics, changing market dynamics toward Artificial Intelligence (AI) & big-data applications, an upbeat consumer sentiment and increased business investments.

Further, the Senate's decision to defer the implementation of an industry-wide excise tax — the Medical Device tax — for another couple of years,  has instilled confidence in investors. The tax will be effective Jan 1, 2020. The bill also delays the so-called Cadillac tax, a 40% tax on employer insurance, until 2022.

Against this backdrop, let's take a sneak peek at the major Medical Product stocks, scheduled to release earnings reports on May 8:

Per the quantitative Zacks model, stocks with the perfect combination of a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP have higher chances of beating estimates. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.