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Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Oils-Energy Names

Zacks Equity Research
·2 min read

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.

The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.

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. Pembina Pipeline (PBA) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.49 a share three days away from its upcoming earnings release on August 4, 2022.

PBA has an Earnings ESP figure of 3.16%, which, as explained above, is calculated by taking the percentage difference between the $0.49 Most Accurate Estimate and the Zacks Consensus Estimate of $0.48.

PBA is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is Enphase Energy (ENPH).

Enphase Energy is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on October 25, 2022. ENPH's Most Accurate Estimate sits at $1.10 a share 85 days from its next earnings release.

For Enphase Energy, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.03 is 7.46%.

PBA and ENPH'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
 
Pembina Pipeline Corp. (PBA) : Free Stock Analysis Report
 
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.