Yahoo Finance Why Investors Need to Take Advantage of These 2 Oils-Energy Stocks Now
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 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.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. TC Energy (TRP) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $0.66 a share, just three days from its upcoming earnings release on August 1, 2024.
TC Energy's Earnings ESP sits at 1.16%, which, as explained above, is calculated by taking the percentage difference between the $0.66 Most Accurate Estimate and the Zacks Consensus Estimate of $0.65.
TRP is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is Matador Resources (MTDR).
Slated to report earnings on October 22, 2024, Matador Resources holds a #2 (Buy) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2 a share 85 days from its next quarterly update.
For Matador Resources, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.97 is 1.32%.
Because both stocks hold a positive Earnings ESP, TRP and MTDR 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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TC Energy Corporation (TRP) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
