Why Investors Need to Take Advantage of These 2 Oils-Energy Stocks Now
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.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
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. Halliburton (HAL) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $0.57 a share, just one day from its upcoming earnings release on October 25, 2022.
By taking the percentage difference between the $0.57 Most Accurate Estimate and the $0.56 Zacks Consensus Estimate, Halliburton has an Earnings ESP of 1.13%.
HAL is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is Comstock Resources (CRK).
Comstock Resources is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on November 1, 2022. CRK's Most Accurate Estimate sits at $1.17 a share eight days from its next earnings release.
The Zacks Consensus Estimate for Comstock Resources is $1.16, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 1.04%.
HAL and CRK'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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Halliburton Company (HAL) : Free Stock Analysis Report
Comstock Resources, Inc. (CRK) : Free Stock Analysis Report
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