Want Better Returns? Don't Ignore These 2 Oils-Energy Stocks Set to Beat Earnings

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.

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 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.

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. Devon Energy (DVN) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.34 a share, just 28 days from its upcoming earnings release on August 6, 2024.

DVN has an Earnings ESP figure of 4.18%, which, as explained above, is calculated by taking the percentage difference between the $1.34 Most Accurate Estimate and the Zacks Consensus Estimate of $1.28.

DVN is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is First Solar (FSLR).

First Solar is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 30, 2024. FSLR's Most Accurate Estimate sits at $2.81 a share 21 days from its next earnings release.

The Zacks Consensus Estimate for First Solar is $2.69, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 4.75%.

Because both stocks hold a positive Earnings ESP, DVN and FSLR 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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Devon Energy Corporation (DVN) : Free Stock Analysis Report

First Solar, Inc. (FSLR) : Free Stock Analysis Report

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