Earnings Estimates Rising for Callon (CPE): Will It Gain?
Callon Petroleum (CPE) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The upward trend in estimate revisions for this independent oil and gas company reflects growing optimism of analysts on its earnings prospects, 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. This insight is at the core of our stock rating tool -- the Zacks Rank.
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.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Callon, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
The company is expected to earn $1.76 per share for the current quarter, which represents a year-over-year change of -56.44%.
Over the last 30 days, five estimates have moved higher for Callon while two have gone lower. As a result, the Zacks Consensus Estimate has increased 13.53%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $7.97 per share represents a change of -45.07% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Callon. Over the past month, six estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 6.41%.
Favorable Zacks Rank
The promising estimate revisions have helped Callon 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
Callon shares have added 5.5% 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.
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Callon Petroleum Company (CPE) : Free Stock Analysis Report
