These 2 Oils-Energy Stocks Could Beat Earnings: Why They Should Be on Your Radar
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.
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 final step today is to look at a stock that meets our ESP qualifications. Suncor Energy (SU) earns a Zacks Rank #3 27 days from its next quarterly earnings release on May 6, 2025, and its Most Accurate Estimate comes in at $1.01 a share.
SU has an Earnings ESP figure of 6.32%, which, as explained above, is calculated by taking the percentage difference between the $1.01 Most Accurate Estimate and the Zacks Consensus Estimate of $0.95.
SU is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at Hess (HES) as well.
Slated to report earnings on April 24, 2025, Hess holds a #3 (Hold) ranking on the Zacks Rank, and it’s Most Accurate Estimate is $2.06 a share 15 days from its next quarterly update.
Hess’ Earnings ESP figure currently stands at 6.91% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.93.
SU and HES’ positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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Suncor Energy Inc. (SU) : Free Stock Analysis Report
Hess Corporation (HES) : Free Stock Analysis Report