These 2 Oils-Energy Stocks Could Beat Earnings: Why They Should Be on Your Radar
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Par Petroleum (PARR) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $2.36 a share, just 26 days from its upcoming earnings release on May 3, 2023.
PARR has an Earnings ESP figure of 8.86%, which, as explained above, is calculated by taking the percentage difference between the $2.36 Most Accurate Estimate and the Zacks Consensus Estimate of $2.16.
PARR is just one of a large group of Oils-Energy stocks with a positive ESP figure. Energy Transfer LP (ET) is another qualifying stock you may want to consider.
Slated to report earnings on May 3, 2023, Energy Transfer LP holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.41 a share 26 days from its next quarterly update.
The Zacks Consensus Estimate for Energy Transfer LP is $0.37, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 10.81%.
PARR and ET's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
Energy Transfer LP (ET) : Free Stock Analysis Report
