With the Q3 earnings season drawing to a close, we now have a clearer picture of the earnings trends. We note a sequential improvement in the quarter with a positive year-over-year growth in both earnings and revenues.
So far, 470 S&P 500 members – 94% of the index’s total market capitalization – have reported their results. Total earnings for these companies are up 3.8% due 2.6% growth in revenues, both on a year-over-year basis. While 73.2% of these companies beat earnings per share (EPS) estimates, 55.3% surpassed top-line expectations as of Nov 17).
Per the Earnings Trends report, the general outlook for the energy sector has improved vastly as the results were better than expectations. However, the sector continued to underperform on a year-over-year basis with a massive 63.3% decrease in earnings due to a 12.9% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 Index witnessed earnings growth of 7.2% as revenues inched up 4.2%.
With most of the companies already having reported their financial results, let’s have a look at how some of these energy companies might fare this quarter when their reveal their Q3 numbers on Nov 21.
Africa Oil Corp. (AOIFF - Free Report) is primarily an oil and gas exploration and development company. The company has oil and gas interests in Kenya and Ethiopia, primarily in the East African Rift Basin. Africa Oil Corp. has a Zacks Rank #2 but an Earnings ESP of 0.00%. Despite the company’s favorable Zacks Rank, our surprise prediction is complicated by its 0.00% Earnings ESP. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Headquartered in Houston, TX, BP Prudhoe Bay Royalty Trust (BPT - Free Report) offers partial ownership in British oil giant BP plc’s (BP - Free Report) Prudhoe Bay oil field. The trust owners – with interest in the field – get cash payment from the revenues that BP generates after deducting production costs and taxes.
BP Prudhoe Bay Royalty Trust’s Earnings ESP of 0.00% complicates our surprise prediction in spite of its favorable Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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With the Q3 earnings season drawing to a close, we now have a clearer picture of the earnings trends. We note a sequential improvement in the quarter with a positive year-over-year growth in both earnings and revenues.
So far, 470 S&P 500 members – 94% of the index’s total market capitalization – have reported their results. Total earnings for these companies are up 3.8% due 2.6% growth in revenues, both on a year-over-year basis. While 73.2% of these companies beat earnings per share (EPS) estimates, 55.3% surpassed top-line expectations as of Nov 17).
Per the Earnings Trends report, the general outlook for the energy sector has improved vastly as the results were better than expectations. However, the sector continued to underperform on a year-over-year basis with a massive 63.3% decrease in earnings due to a 12.9% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 Index witnessed earnings growth of 7.2% as revenues inched up 4.2%.
With most of the companies already having reported their financial results, let’s have a look at how some of these energy companies might fare this quarter when their reveal their Q3 numbers on Nov 21.
Africa Oil Corp. (AOIFF - Free Report) is primarily an oil and gas exploration and development company. The company has oil and gas interests in Kenya and Ethiopia, primarily in the East African Rift Basin. Africa Oil Corp. has a Zacks Rank #2 but an Earnings ESP of 0.00%. Despite the company’s favorable Zacks Rank, our surprise prediction is complicated by its 0.00% Earnings ESP. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Headquartered in Houston, TX, BP Prudhoe Bay Royalty Trust (BPT - Free Report) offers partial ownership in British oil giant BP plc’s (BP - Free Report) Prudhoe Bay oil field. The trust owners – with interest in the field – get cash payment from the revenues that BP generates after deducting production costs and taxes.
BP Prudhoe Bay Royalty Trust’s Earnings ESP of 0.00% complicates our surprise prediction in spite of its favorable Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Industry Outlook, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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