Want Better Returns? Don't Ignore These 2 Oils-Energy Stocks Set to Beat Earnings
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, 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. Plains All American Pipeline (PAA) earns a Zacks Rank #3 10 days from its next quarterly earnings release on August 4, 2023, and its Most Accurate Estimate comes in at $0.22 a share.
By taking the percentage difference between the $0.22 Most Accurate Estimate and the $0.21 Zacks Consensus Estimate, Plains All American Pipeline has an Earnings ESP of 4.95%.
PAA is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at Southwestern Energy (SWN) as well.
Southwestern Energy is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 3, 2023. SWN's Most Accurate Estimate sits at $0.07 a share nine days from its next earnings release.
For Southwestern Energy, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.07 is 4.21%.
PAA and SWN'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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Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
Southwestern Energy Company (SWN) : Free Stock Analysis Report
