How to Find Strong Oils-Energy Stocks Slated for Positive Earnings Surprises
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
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. APA (APA) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $1.11 a share, just six days from its upcoming earnings release on November 1, 2023.
By taking the percentage difference between the $1.11 Most Accurate Estimate and the $1.09 Zacks Consensus Estimate, APA has an Earnings ESP of 1.58%.
APA is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is Plains All American Pipeline (PAA).
Plains All American Pipeline is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 3, 2023. PAA's Most Accurate Estimate sits at $0.28 a share eight days from its next earnings release.
The Zacks Consensus Estimate for Plains All American Pipeline is $0.24, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 19.15%.
APA and PAA'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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APA Corporation (APA) : Free Stock Analysis Report
Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
