雅虎香港財經 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.
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.
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. Energy Transfer LP (ET) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.35 a share 19 days away from its upcoming earnings release on May 8, 2024.
Energy Transfer LP's Earnings ESP sits at 14.75%, which, as explained above, is calculated by taking the percentage difference between the $0.35 Most Accurate Estimate and the Zacks Consensus Estimate of $0.31.
ET is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at Kinder Morgan (KMI) as well.
Kinder Morgan, which is readying to report earnings on July 17, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0.26 a share, and KMI is 89 days out from its next earnings report.
For Kinder Morgan, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.26 is 0.97%.
Because both stocks hold a positive Earnings ESP, ET and KMI 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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Energy Transfer LP (ET) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
