Yahoo Finance How to Boost Your Portfolio with Top Oils-Energy Stocks Set to Beat Earnings
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.
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 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. Black Stone Minerals (BSM) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.48 a share 19 days away from its upcoming earnings release on May 1, 2023.
Black Stone Minerals' Earnings ESP sits at 3.26%, which, as explained above, is calculated by taking the percentage difference between the $0.48 Most Accurate Estimate and the Zacks Consensus Estimate of $0.46.
BSM is one of just a large database of Oils-Energy stocks with positive ESPs. Another solid-looking stock is Halliburton (HAL).
Halliburton is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 25, 2023. HAL's Most Accurate Estimate sits at $0.68 a share 13 days from its next earnings release.
For Halliburton, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.67 is 1.22%.
BSM and HAL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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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Black Stone Minerals, L.P. (BSM) : Free Stock Analysis Report
Halliburton Company (HAL) : Free Stock Analysis Report
