U.S. Markets closed
  • S&P Futures

    3,274.00
    -28.25 (-0.86%)
     
  • Dow Futures

    26,390.00
    -167.00 (-0.63%)
     
  • Nasdaq Futures

    11,197.50
    -145.25 (-1.28%)
     
  • Russell 2000 Futures

    1,548.90
    -9.50 (-0.61%)
     
  • Crude Oil

    36.40
    +0.23 (+0.64%)
     
  • Gold

    1,871.80
    +3.80 (+0.20%)
     
  • Silver

    23.51
    +0.15 (+0.64%)
     
  • EUR/USD

    1.1688
    +0.0010 (+0.0818%)
     
  • 10-Yr Bond

    0.8350
    +0.0540 (+6.91%)
     
  • Vix

    37.59
    -2.69 (-6.68%)
     
  • GBP/USD

    1.2936
    +0.0013 (+0.0970%)
     
  • USD/JPY

    104.4690
    -0.1410 (-0.1348%)
     
  • BTC-USD

    13,513.17
    +82.49 (+0.61%)
     
  • CMC Crypto 200

    265.74
    +23.06 (+9.50%)
     
  • FTSE 100

    5,581.75
    -1.05 (-0.02%)
     
  • Nikkei 225

    23,152.24
    -179.70 (-0.77%)
     

Earnings Estimates Moving Higher for CrossAmerica (CAPL): Time to Buy?

Zacks Equity Research

CrossAmerica Partners (CAPL) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts' growing optimism on the earnings prospects of this wholesale fuels distributor is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For CrossAmerica, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The earnings estimate of $0.27 per share for the current quarter represents a change of +80% from the number reported a year ago.

Over the last 30 days, one estimate has moved higher for CrossAmerica compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 12.5%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $0.74 per share, representing a year-over-year change of +572.73%.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for CrossAmerica versus no negative revisions. This has pushed the consensus estimate 15.63% higher.

Favorable Zacks Rank

The promising estimate revisions have helped CrossAmerica earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

CrossAmerica shares have added 6.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research