Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Oils-Energy Names
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.
2 Stocks to Add to Your Watchlist
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. ConocoPhillips (COP) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $3.83 a share one day away from its upcoming earnings release on August 4, 2022.
By taking the percentage difference between the $3.83 Most Accurate Estimate and the $3.78 Zacks Consensus Estimate, ConocoPhillips has an Earnings ESP of 1.21%.
COP is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is NextEra Energy Partners (NEP).
NextEra Energy Partners is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on October 19, 2022. NEP's Most Accurate Estimate sits at $0.77 a share 77 days from its next earnings release.
NextEra Energy Partners' Earnings ESP figure currently stands at 7.69% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.72.
Because both stocks hold a positive Earnings ESP, COP and NEP could potentially post earnings beats in their next reports.
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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ConocoPhillips (COP) : Free Stock Analysis Report
NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report
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