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

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

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 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.

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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. Cheniere Energy (LNG) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $2.50 a share nine days away from its upcoming earnings release on May 3, 2024.

LNG has an Earnings ESP figure of 7.02%, which, as explained above, is calculated by taking the percentage difference between the $2.50 Most Accurate Estimate and the Zacks Consensus Estimate of $2.34.

LNG is just one of a large group of Oils-Energy stocks with a positive ESP figure. Civitas Resources (CIVI) is another qualifying stock you may want to consider.

Civitas Resources is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 2, 2024. CIVI's Most Accurate Estimate sits at $2.54 a share eight days from its next earnings release.

For Civitas Resources, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.52 is 1.04%.

LNG and CIVI's 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

Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

Civitas Resources, Inc. (CIVI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research