U.S. Markets open in 2 hrs 15 mins

Why Earnings Season Could Be Great for Roan Resources (ROAN)

Zacks Equity Research

Investors are always looking for stocks that are poised to beat at earnings season and Roan Resources, Inc. ROAN may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Roan Resources is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ROAN in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at 18 cents per share for ROAN, compared to a broader Zacks Consensus Estimate of 15 cents per share. This suggests that analysts have very recently bumped up their estimates for ROAN, giving the stock a Zacks Earnings ESP of +20.00% heading into earnings season.

Roan Resources, Inc. Price and EPS Surprise

Roan Resources, Inc. Price and EPS Surprise

Roan Resources, Inc. price-eps-surprise | Roan Resources, Inc. Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that ROAN has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Roan Resources, and that a beat might be in the cards for the upcoming report.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Roan Resources, Inc. (ROAN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research