How to Find Strong Oils-Energy Stocks Slated for Positive Earnings Surprises
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.
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, 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 final step today is to look at a stock that meets our ESP qualifications. Chesapeake Energy (CHK) earns a Zacks Rank #3 28 days from its next quarterly earnings release on August 1, 2023, and its Most Accurate Estimate comes in at $0.92 a share.
Chesapeake Energy's Earnings ESP sits at 15%, which, as explained above, is calculated by taking the percentage difference between the $0.92 Most Accurate Estimate and the Zacks Consensus Estimate of $0.80.
CHK is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at Par Petroleum (PARR) as well.
Slated to report earnings on August 14, 2023, Par Petroleum holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.32 a share 41 days from its next quarterly update.
Par Petroleum's Earnings ESP figure currently stands at 11.75% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.18.
CHK and PARR's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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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Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
