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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Oils-Energy Names

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·2 min read
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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

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.

The final step today is to look at a stock that meets our ESP qualifications. PDC Energy (PDCE) earns a Zacks Rank #1 28 days from its next quarterly earnings release on August 3, 2022, and its Most Accurate Estimate comes in at $5.34 a share.

By taking the percentage difference between the $5.34 Most Accurate Estimate and the $4.76 Zacks Consensus Estimate, PDC Energy has an Earnings ESP of 12.19%.

PDCE is just one of a large group of Oils-Energy stocks with a positive ESP figure. Ecopetrol (EC) is another qualifying stock you may want to consider.

Ecopetrol, which is readying to report earnings on August 3, 2022, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.90 a share, and EC is 28 days out from its next earnings report.

The Zacks Consensus Estimate for Ecopetrol is $0.85, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 6.51%.

Because both stocks hold a positive Earnings ESP, PDCE and EC 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 >>


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
 
PDC Energy, Inc. (PDCE) : Free Stock Analysis Report
 
Ecopetrol S.A. (EC) : Free Stock Analysis Report
 
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Zacks Investment Research