Advertisement
Singapore markets open in 4 hours 25 minutes

  • Straits Times Index

    3,318.45
    +1.89 (+0.06%)
     

  • S&P 500

    5,304.72
    +36.88 (+0.70%)
     

  • Dow

    39,069.59
    +4.29 (+0.01%)
     

  • Nasdaq

    16,920.79
    +184.79 (+1.10%)
     

  • Bitcoin USD

    69,531.00
    +787.12 (+1.15%)
     

  • CMC Crypto 200

    1,496.12
    +11.92 (+0.80%)
     

  • FTSE 100

    8,317.59
    -21.64 (-0.26%)
     

  • Gold

    2,352.50
    +18.00 (+0.77%)
     

  • Crude Oil

    78.55
    +0.83 (+1.07%)
     

  • 10-Yr Bond

    4.4670
    0.0000 (0.00%)
     

  • Nikkei

    38,900.02
    +253.91 (+0.66%)
     

  • Hang Seng

    18,827.35
    +218.41 (+1.17%)
     

  • FTSE Bursa Malaysia

    1,618.27
    -1.13 (-0.07%)
     

  • Jakarta Composite Index

    7,176.42
    -7,222.38 (-50.16%)
     

  • PSE Index

    6,571.60
    -48.29 (-0.73%)
     

How to Find Strong Oils-Energy Stocks Slated for Positive Earnings Surprises

Zacks Equity Research
·2-min read

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.

ADVERTISEMENT

The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Canadian Solar (CSIQ) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at -$0.03 a share three days away from its upcoming earnings release on May 9, 2024.

By taking the percentage difference between the -$0.03 Most Accurate Estimate and the -$0.26 Zacks Consensus Estimate, Canadian Solar has an Earnings ESP of 88.57%.

CSIQ is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is Western Midstream (WES).

Slated to report earnings on May 8, 2024, Western Midstream holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.87 a share two days from its next quarterly update.

For Western Midstream, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.84 is 4.49%.

CSIQ and WES' 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 >>

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

Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report

Western Midstream Partners, LP (WES) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research