How to Boost Your Portfolio with Top Oils-Energy Stocks Set to Beat Earnings
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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. Schlumberger (SLB) earns a Zacks Rank #3 30 days from its next quarterly earnings release on April 21, 2023, and its Most Accurate Estimate comes in at $0.62 a share.
By taking the percentage difference between the $0.62 Most Accurate Estimate and the $0.60 Zacks Consensus Estimate, Schlumberger has an Earnings ESP of 3.12%.
SLB is just one of a large group of Oils-Energy stocks with a positive ESP figure. Liberty Oilfield Services (LBRT) is another qualifying stock you may want to consider.
Liberty Oilfield Services is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on April 19, 2023. LBRT's Most Accurate Estimate sits at $0.89 a share 28 days from its next earnings release.
The Zacks Consensus Estimate for Liberty Oilfield Services is $0.82, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 9.13%.
Because both stocks hold a positive Earnings ESP, SLB and LBRT could potentially post earnings beats in their next reports.
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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Schlumberger Limited (SLB) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
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