Want Better Returns? Don't Ignore These 2 Oils-Energy Stocks Set to Beat Earnings
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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 final step today is to look at a stock that meets our ESP qualifications. Callon Petroleum (CPE) earns a Zacks Rank #3 nine days from its next quarterly earnings release on August 3, 2022, and its Most Accurate Estimate comes in at $3.96 a share.
CPE has an Earnings ESP figure of 1.28%, which, as explained above, is calculated by taking the percentage difference between the $3.96 Most Accurate Estimate and the Zacks Consensus Estimate of $3.91.
CPE is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at Chevron (CVX) as well.
Chevron is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on July 29, 2022. CVX's Most Accurate Estimate sits at $5.10 a share four days from its next earnings release.
Chevron's Earnings ESP figure currently stands at 1.69% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.01.
CPE and CVX'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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Callon Petroleum Company (CPE) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
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