Why Investors Need to Take Advantage of These 2 Oils-Energy Stocks Now
Wall Street watches a company’s quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these 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.
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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. Valero Energy (VLO) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $1.89 a share 30 days away from its upcoming earnings release on July 24, 2025.
Valero Energy’s Earnings ESP sits at 6.7%, which, as explained above, is calculated by taking the percentage difference between the $1.89 Most Accurate Estimate and the Zacks Consensus Estimate of $1.77.
VLO is just one of a large group of Oils-Energy stocks with a positive ESP figure. GE Vernova (GEV) is another qualifying stock you may want to consider.
GE Vernova is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 23, 2025. GEV’s Most Accurate Estimate sits at $2.06 a share 29 days from its next earnings release.
For GE Vernova, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.63 is 26.72%.
VLO and GEV’s 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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