Yahoo Finance Why Investors Need to Take Advantage of These 2 Oils-Energy Stocks Now
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.
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 is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks 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. Phillips 66 (PSX) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $3.82 a share 29 days away from its upcoming earnings release on April 26, 2024.
Phillips 66's Earnings ESP sits at 16.92%, which, as explained above, is calculated by taking the percentage difference between the $3.82 Most Accurate Estimate and the Zacks Consensus Estimate of $3.27.
PSX is just one of a large group of Oils-Energy stocks with a positive ESP figure. Oneok Inc. (OKE) is another qualifying stock you may want to consider.
Slated to report earnings on May 7, 2024, Oneok Inc. holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.18 a share 40 days from its next quarterly update.
The Zacks Consensus Estimate for Oneok Inc. is $1.06, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 11.14%.
PSX and OKE'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 >>
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Phillips 66 (PSX) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report
