Yahoo Finance How to Find Strong Oils-Energy Stocks Slated for Positive Earnings Surprises
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.
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 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.
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. New Fortress Energy (NFE) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.96 a share 16 days away from its upcoming earnings release on May 2, 2024.
New Fortress Energy's Earnings ESP sits at 12.06%, which, as explained above, is calculated by taking the percentage difference between the $0.96 Most Accurate Estimate and the Zacks Consensus Estimate of $0.85.
NFE is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is APA (APA).
APA is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 1, 2024. APA's Most Accurate Estimate sits at $0.94 a share 15 days from its next earnings release.
For APA, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.88 is 6.77%.
Because both stocks hold a positive Earnings ESP, NFE and APA 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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New Fortress Energy LLC (NFE) : Free Stock Analysis Report
APA Corporation (APA) : Free Stock Analysis Report
