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

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.

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.

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. Enterprise Products Partners (EPD) holds a Zacks Rank #2 at the moment and its Most Accurate Estimate comes in at $0.62 a share 29 days away from its upcoming earnings release on July 27, 2022.

EPD has an Earnings ESP figure of 3.58%, which, as explained above, is calculated by taking the percentage difference between the $0.62 Most Accurate Estimate and the Zacks Consensus Estimate of $0.60.

EPD is just one of a large group of Oils-Energy stocks with a positive ESP figure. Marathon Oil (MRO) is another qualifying stock you may want to consider.

Marathon Oil, which is readying to report earnings on August 3, 2022, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.34 a share, and MRO is 36 days out from its next earnings report.

For Marathon Oil, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.30 is 2.9%.

EPD and MRO'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 >>

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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
Marathon Oil Corporation (MRO) : Free Stock Analysis Report
 
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