For Immediate Release
Chicago, IL – November 3, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Denbury Resources Inc. , Energen Corporation , Resolute Energy Corporation and Extraction Oil & Gas, Inc. .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
4 Energy Stocks Set to Beat Q3 Earnings
The Q3 earnings season is approaching its end, with 65.4% S&P 500 companies having already released results. The season has also seen releases from 67.7% of the companies in the energy space, belonging to the index. According to the latest Earnings Trends, total earnings for these energy firms are up 127.2% from the same period last year on 18.7% higher revenues. Notably, 76.2% of the companies have reported positive earnings surprises so far, with 71.4% beating revenue estimates.
Our report also shows that energy is the only sector among the 16 representing the S&P 500 index to witness triple-digit earnings growth in Q3.
Although majority of the key energy players have reported their quarterly numbers, there are still a few energy companies that are expected to come up with solid results. These companies can make valuable addition to your portfolio now.
Oil Recovers in Q3
As per macrotrends, The West Texas Intermediate (WTI) crude saw a 12.2% gain during the third quarter of 2017 after two consecutive quarters of decline this year. Notably, this is the highest quarterly gain since the April-to-June quarter of 2016.
According to The U.S. Energy Information Administration (EIA), average monthly prices for each month of the third quarter of 2017 were higher than the year-ago comparable period. Lower global crude inventory helped ease the crude supply glut concern which primarily supported the oil price rally in the third quarter.
Oversupply Concerns Ease in Q3
Per the EIA, during the July-to-September quarter of this year, worldwide oil inventories declined by 500,000 barrels per day (B/D). With this, the inventory level fell for three quarters in a row.
According to The Oil & Gas Journal, Organization of the Petroleum Exporting Countries (OPEC) produced an average of 32.9 million B/D in the third quarter as compared to last November’s 33.4 million B/D. Thus, it can be safely concluded that the leading crude exporter’s landmark production cut deal primarily supported the draws in global crude inventory.
Crude Turnaround Drives Earnings
Most of the major energy firms have reported strong Q3 numbers so far. ExxonMobil, the world’s largest publicly traded oil company, reported earnings of 93 cents per share, which surpassed the Zacks Consensus Estimate of 89 cents. Also, the bottom line improved from the year-ago quarter level of 63 cents.
British energy giant BPreported third-quarter adjusted earnings of 57 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line surpassed the Zacks Consensus Estimate of 50 cents and the year-ago earnings of 30 cents.
Another European energy major Royal Dutch Shell plc (RDS.A) reported earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of 98 cents, breezing past the Zacks Consensus Estimate of 83 cents and the year-ago profit of 70 cents.
These releases clearly show the positive impact of the promising Q3 crude pricing environment on the bottom-line performance of key energy companies.
How to Make the Right Pick?
Since crude determines the fate of energy companies, the favorable oil price scenario will support Q3 numbers for energy firms that are yet to report results.
Given the plethora of issues faced by the Oils/Energy sector, picking the most investment-worthy stock is undoubtedly a daunting task. This is where the Zacks methodology comes to the rescue. One could narrow down the list using positive Earnings ESP as a guide, along with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Here are four energy companies that are poised to beat earnings this season:
Headquartered in Plano, TX, Denbury Resources Inc. is an upstream energy firm with strong foothold in the Rocky Mountain region and the Gulf Coast area.
Denbury is likely to beat third-quarter earnings as it has an Earnings ESP of +11.11% and a Zacks Rank #2. The company is expected to report third-quarter results before the opening bell on Nov 7.
Energen Corporation, headquartered in Birmingham, AL, is primarily involved in exploration and production activities in the oil-rich Permian Basin.
The company is slated to release third-quarter results on Nov 8. We expect Energen to surpass the consensus estimate as it has a Zacks Rank #3 and an Earnings ESP of +9.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Based in Denver, CO, Resolute Energy Corporation is involved in the exploration of unconventional crude and natural gas resources. The firm will report third-quarter results on Nov 6, after the closing bell. We believe Resolute Energy will beat the Zacks Consensus Estimate given its Zacks Rank #3 and Earnings ESP of +28.91%.
Extraction Oil & Gas, Inc., headquartered in Denver, CO, is scheduled to report third-quarter results on Nov 7, after the closing bell. With an Earnings ESP of +4.55% and Zacks Rank #3, we expect this upstream energy player’s earnings to beat the Zacks Consensus Estimate this quarter.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Image: Bigstock
The Zacks Analyst Blog Highlights: Denbury Resources, Energen, Resolute Energy and Extraction Oil & Gas
For Immediate Release
Chicago, IL – November 3, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Denbury Resources Inc. , Energen Corporation , Resolute Energy Corporation and Extraction Oil & Gas, Inc. .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
4 Energy Stocks Set to Beat Q3 Earnings
The Q3 earnings season is approaching its end, with 65.4% S&P 500 companies having already released results. The season has also seen releases from 67.7% of the companies in the energy space, belonging to the index. According to the latest Earnings Trends, total earnings for these energy firms are up 127.2% from the same period last year on 18.7% higher revenues. Notably, 76.2% of the companies have reported positive earnings surprises so far, with 71.4% beating revenue estimates.
Our report also shows that energy is the only sector among the 16 representing the S&P 500 index to witness triple-digit earnings growth in Q3.
Although majority of the key energy players have reported their quarterly numbers, there are still a few energy companies that are expected to come up with solid results. These companies can make valuable addition to your portfolio now.
Oil Recovers in Q3
As per macrotrends, The West Texas Intermediate (WTI) crude saw a 12.2% gain during the third quarter of 2017 after two consecutive quarters of decline this year. Notably, this is the highest quarterly gain since the April-to-June quarter of 2016.
According to The U.S. Energy Information Administration (EIA), average monthly prices for each month of the third quarter of 2017 were higher than the year-ago comparable period. Lower global crude inventory helped ease the crude supply glut concern which primarily supported the oil price rally in the third quarter.
Oversupply Concerns Ease in Q3
Per the EIA, during the July-to-September quarter of this year, worldwide oil inventories declined by 500,000 barrels per day (B/D). With this, the inventory level fell for three quarters in a row.
According to The Oil & Gas Journal, Organization of the Petroleum Exporting Countries (OPEC) produced an average of 32.9 million B/D in the third quarter as compared to last November’s 33.4 million B/D. Thus, it can be safely concluded that the leading crude exporter’s landmark production cut deal primarily supported the draws in global crude inventory.
Crude Turnaround Drives Earnings
Most of the major energy firms have reported strong Q3 numbers so far. ExxonMobil, the world’s largest publicly traded oil company, reported earnings of 93 cents per share, which surpassed the Zacks Consensus Estimate of 89 cents. Also, the bottom line improved from the year-ago quarter level of 63 cents.
British energy giant BPreported third-quarter adjusted earnings of 57 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line surpassed the Zacks Consensus Estimate of 50 cents and the year-ago earnings of 30 cents.
Another European energy major Royal Dutch Shell plc (RDS.A) reported earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of 98 cents, breezing past the Zacks Consensus Estimate of 83 cents and the year-ago profit of 70 cents.
These releases clearly show the positive impact of the promising Q3 crude pricing environment on the bottom-line performance of key energy companies.
How to Make the Right Pick?
Since crude determines the fate of energy companies, the favorable oil price scenario will support Q3 numbers for energy firms that are yet to report results.
Given the plethora of issues faced by the Oils/Energy sector, picking the most investment-worthy stock is undoubtedly a daunting task. This is where the Zacks methodology comes to the rescue. One could narrow down the list using positive Earnings ESP as a guide, along with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Here are four energy companies that are poised to beat earnings this season:
Headquartered in Plano, TX, Denbury Resources Inc. is an upstream energy firm with strong foothold in the Rocky Mountain region and the Gulf Coast area.
Denbury is likely to beat third-quarter earnings as it has an Earnings ESP of +11.11% and a Zacks Rank #2. The company is expected to report third-quarter results before the opening bell on Nov 7.
Energen Corporation, headquartered in Birmingham, AL, is primarily involved in exploration and production activities in the oil-rich Permian Basin.
The company is slated to release third-quarter results on Nov 8. We expect Energen to surpass the consensus estimate as it has a Zacks Rank #3 and an Earnings ESP of +9.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Based in Denver, CO, Resolute Energy Corporation is involved in the exploration of unconventional crude and natural gas resources. The firm will report third-quarter results on Nov 6, after the closing bell. We believe Resolute Energy will beat the Zacks Consensus Estimate given its Zacks Rank #3 and Earnings ESP of +28.91%.
Extraction Oil & Gas, Inc., headquartered in Denver, CO, is scheduled to report third-quarter results on Nov 7, after the closing bell. With an Earnings ESP of +4.55% and Zacks Rank #3, we expect this upstream energy player’s earnings to beat the Zacks Consensus Estimate this quarter.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.