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.
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. First Solar (FSLR) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.05 a share, just 30 days from its upcoming earnings release on April 27, 2023.
By taking the percentage difference between the $1.05 Most Accurate Estimate and the $0.95 Zacks Consensus Estimate, First Solar has an Earnings ESP of 10.52%.
FSLR is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at CVR Energy (CVI) as well.
Slated to report earnings on May 1, 2023, CVR Energy holds a #1 (Strong Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1 a share 34 days from its next quarterly update.
CVR Energy's Earnings ESP figure currently stands at 14.29% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.88.
FSLR and CVI'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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First Solar, Inc. (FSLR) : Free Stock Analysis Report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
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