Xcel Energy (XEL - Free Report) is expected to deliver a positive earnings surprise in first-quarter 2018, before the market opens, on Apr 26. This utility reported a negative earnings surprise of 2.33% in the last quarter.
Why a Likely Positive Surprise
Our proven model shows that Xcel Energy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates, and Xcel Energy has the right mix.
Zacks ESP: Earnings ESP is pegged at +1.11%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Xcel Energy carries a Zacks Rank #2. The combination of Xcel Energy’s favorable Zacks Rank and a positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
For the first quarter, the Zacks Consensus Estimate for Xcel Energy’s revenues is pegged at $2,932 million, indicating a sequential increase of 4.9%. The Zacks Consensus Estimate for earnings is 51 cents, reflecting sequential growth of 21.4%.
Xcel Energy is expected to continue benefiting from ongoing improvement in the economic condition in its service territories. The upward revision in both electric and natural gas customers is expected to have a positive impact on demand.
Continuous improvement in productivity through technology has lowered Xcel Energy’s O&M expenses. We expect the company’s initiative to keep O&M expenses flat, boosting margins in the first and coming quarters.
Other Stocks to Consider
In addition to Xcel Energy, here are a few more players from the industry that have the right combination of elements to post an earnings beat this quarter.
CenterPoint Energy Inc. (CNP - Free Report) is expected to release first-quarter results on May 4, 2018. It has an Earnings ESP of +0.59% and a Zacks Rank #1.
Vistra Energy Corp. (VST - Free Report) is anticipated to release first-quarter results on May 4, 2018. It has an Earnings ESP of +57.41% and carries a Zacks Rank #2.
CMS Energy Corporation (CMS - Free Report) is expected to release first-quarter results on Apr 26, 2018. It has an Earnings ESP of +2.08% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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 >>
Xcel Energy (XEL - Free Report) is expected to deliver a positive earnings surprise in first-quarter 2018, before the market opens, on Apr 26. This utility reported a negative earnings surprise of 2.33% in the last quarter.
Why a Likely Positive Surprise
Our proven model shows that Xcel Energy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates, and Xcel Energy has the right mix.
Zacks ESP: Earnings ESP is pegged at +1.11%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Xcel Energy carries a Zacks Rank #2. The combination of Xcel Energy’s favorable Zacks Rank and a positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
For the first quarter, the Zacks Consensus Estimate for Xcel Energy’s revenues is pegged at $2,932 million, indicating a sequential increase of 4.9%. The Zacks Consensus Estimate for earnings is 51 cents, reflecting sequential growth of 21.4%.
Xcel Energy is expected to continue benefiting from ongoing improvement in the economic condition in its service territories. The upward revision in both electric and natural gas customers is expected to have a positive impact on demand.
Continuous improvement in productivity through technology has lowered Xcel Energy’s O&M expenses. We expect the company’s initiative to keep O&M expenses flat, boosting margins in the first and coming quarters.
Other Stocks to Consider
In addition to Xcel Energy, here are a few more players from the industry that have the right combination of elements to post an earnings beat this quarter.
CenterPoint Energy Inc. (CNP - Free Report) is expected to release first-quarter results on May 4, 2018. It has an Earnings ESP of +0.59% and a Zacks Rank #1.
Vistra Energy Corp. (VST - Free Report) is anticipated to release first-quarter results on May 4, 2018. It has an Earnings ESP of +57.41% and carries a Zacks Rank #2.
CMS Energy Corporation (CMS - Free Report) is expected to release first-quarter results on Apr 26, 2018. It has an Earnings ESP of +2.08% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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 >>
Get the latest research report on XEL - FREE
Get the latest research report on CMS - FREE
Get the latest research report on CNP - FREE
Get the latest research report on VST - FREE