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Earnings Season: 3 Top-Ranked Stocks Likely to Surprise
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The market continues to digest Q3 earnings results and other key developments, including yesterday’s highly-awaited FOMC announcement. The Q3 cycle has primarily been positive so far, with a fair number of companies delivering better-than-expected results and providing uplifting commentary.
And with many companies slated to report in the coming weeks, surprises could be lurking beneath the hood. A few of these positive surprises could come from Dutch Bros (BROS - Free Report) , Devon Energy (DVN - Free Report) , and Wix.com Ltd. (WIX - Free Report) . All three sport a positive Zacks Earnings ESP Score.
Zacks Earnings ESP (Expected Surprise Prediction) finds companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is generally more accurate and can better predict the future, giving investors an advantage in earnings season.
Our research shows that for stocks with a combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. The score reflects the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Let’s take a closer look at each.
Dutch Bros
Dutch Bros, a current Zacks Rank #2 (Buy), is an operator and franchisor of drive-thru shops that focus on serving high-quality, hand-crafted beverages. The company currently has an Earnings ESP Score of +12.1%, expected to report on November 7th after the market's close.
The company has positively surprised in a big way in back-to-back releases, exceeding the Zacks Consensus EPS Estimate by 85% in its latest release, which followed a 100% beat in the quarter prior. Still, shares have had mixed reactions in response to quarterly results in 2023.
As we can see, shares initially popped following its latest release but have since given back post-earnings gains.
Image Source: Zacks Investment Research
Dutch Bros is expected to see a solid uptick in sales, with the current $257.2 million Zacks Consensus Estimate 30% higher than year-ago sales of $198.6 million. The company’s revenue growth has remained steadily strong, seeing an acceleration throughout its latest quarter. In addition, the current $0.07 Zacks Consensus EPS Estimate suggests a -22% pullback from the year-ago period.
Image Source: Zacks Investment Research
Devon Energy
Devon Energy, a current Zacks Rank #2 (Buy), is an independent energy company engaged primarily in the exploration, development, and production of oil and natural gas.
The company has enjoyed positive earnings estimate revisions across the board and has an Earnings ESP Score of +0.7%, expected to report on November 7th after the market's close.
Image Source: Zacks Investment Research
Record-setting oil production of 323,000 barrels per day throughout its latest quarter aided DVN’s results, with the company posting a marginal +0.9% EPS surprise but falling short of revenue expectations.
Analysts have been bullish regarding top line expectations, with the $4 billion quarterly estimate +1.2% higher since mid-August. The value suggests a 25% pullback from year-ago sales, reflecting a return to more ‘normal’ results following 2022’s energy boom.
Image Source: Zacks Investment Research
Earnings expectations have also moved higher during the same period, as the $1.55 Zacks Consensus EPS Estimate is up +7.6% and reflects a pullback of 28% year-over-year on hard comps.
Image Source: Zacks Investment Research
Wix.com Ltd.
Wix.com, a current Zacks Rank #1 (Strong Buy), is a cloud-based web development platform. The company carries an Earnings ESP Score of +20.2%, with consensus earnings expectations increasing across all timeframes. WIX is expected to report on November 9th before the market's open.
Image Source: Zacks Investment Research
The company’s forecasted growth is impossible to ignore, with consensus estimates alluding to a 1200% EPS boost and a 12% climb in revenue. Both EPS and revenue expectations for the upcoming release have seen positive revisions since mid-August, up 11.6% and 0.3%, respectively.
Image Source: Zacks Investment Research
Wix has consistently posted big surprises lately, exceeding the Zacks Consensus EPS Estimate by an average of 320% across its last four releases. In its latest print, the company delivered a 130% EPS beat and reported revenue 2.1% ahead of the consensus.
The company’s revenue trajectory has been visibly strong.
Image Source: Zacks Investment Research
Bottom Line
With many companies slated to report in the coming weeks, surprises could be lurking beneath the hood. A few of these positive surprises could come from Dutch Bros (BROS - Free Report) , Devon Energy (DVN - Free Report) , and Wix.com Ltd. (WIX - Free Report) . All three sport a positive Zacks Earnings ESP Score and a favorable Zacks Rank.
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Earnings Season: 3 Top-Ranked Stocks Likely to Surprise
The market continues to digest Q3 earnings results and other key developments, including yesterday’s highly-awaited FOMC announcement. The Q3 cycle has primarily been positive so far, with a fair number of companies delivering better-than-expected results and providing uplifting commentary.
And with many companies slated to report in the coming weeks, surprises could be lurking beneath the hood. A few of these positive surprises could come from Dutch Bros (BROS - Free Report) , Devon Energy (DVN - Free Report) , and Wix.com Ltd. (WIX - Free Report) . All three sport a positive Zacks Earnings ESP Score.
Zacks Earnings ESP (Expected Surprise Prediction) finds companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is generally more accurate and can better predict the future, giving investors an advantage in earnings season.
Our research shows that for stocks with a combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. The score reflects the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Let’s take a closer look at each.
Dutch Bros
Dutch Bros, a current Zacks Rank #2 (Buy), is an operator and franchisor of drive-thru shops that focus on serving high-quality, hand-crafted beverages. The company currently has an Earnings ESP Score of +12.1%, expected to report on November 7th after the market's close.
The company has positively surprised in a big way in back-to-back releases, exceeding the Zacks Consensus EPS Estimate by 85% in its latest release, which followed a 100% beat in the quarter prior. Still, shares have had mixed reactions in response to quarterly results in 2023.
As we can see, shares initially popped following its latest release but have since given back post-earnings gains.
Image Source: Zacks Investment Research
Dutch Bros is expected to see a solid uptick in sales, with the current $257.2 million Zacks Consensus Estimate 30% higher than year-ago sales of $198.6 million. The company’s revenue growth has remained steadily strong, seeing an acceleration throughout its latest quarter. In addition, the current $0.07 Zacks Consensus EPS Estimate suggests a -22% pullback from the year-ago period.
Image Source: Zacks Investment Research
Devon Energy
Devon Energy, a current Zacks Rank #2 (Buy), is an independent energy company engaged primarily in the exploration, development, and production of oil and natural gas.
The company has enjoyed positive earnings estimate revisions across the board and has an Earnings ESP Score of +0.7%, expected to report on November 7th after the market's close.
Image Source: Zacks Investment Research
Record-setting oil production of 323,000 barrels per day throughout its latest quarter aided DVN’s results, with the company posting a marginal +0.9% EPS surprise but falling short of revenue expectations.
Analysts have been bullish regarding top line expectations, with the $4 billion quarterly estimate +1.2% higher since mid-August. The value suggests a 25% pullback from year-ago sales, reflecting a return to more ‘normal’ results following 2022’s energy boom.
Image Source: Zacks Investment Research
Earnings expectations have also moved higher during the same period, as the $1.55 Zacks Consensus EPS Estimate is up +7.6% and reflects a pullback of 28% year-over-year on hard comps.
Image Source: Zacks Investment Research
Wix.com Ltd.
Wix.com, a current Zacks Rank #1 (Strong Buy), is a cloud-based web development platform. The company carries an Earnings ESP Score of +20.2%, with consensus earnings expectations increasing across all timeframes. WIX is expected to report on November 9th before the market's open.
Image Source: Zacks Investment Research
The company’s forecasted growth is impossible to ignore, with consensus estimates alluding to a 1200% EPS boost and a 12% climb in revenue. Both EPS and revenue expectations for the upcoming release have seen positive revisions since mid-August, up 11.6% and 0.3%, respectively.
Image Source: Zacks Investment Research
Wix has consistently posted big surprises lately, exceeding the Zacks Consensus EPS Estimate by an average of 320% across its last four releases. In its latest print, the company delivered a 130% EPS beat and reported revenue 2.1% ahead of the consensus.
The company’s revenue trajectory has been visibly strong.
Image Source: Zacks Investment Research
Bottom Line
With many companies slated to report in the coming weeks, surprises could be lurking beneath the hood. A few of these positive surprises could come from Dutch Bros (BROS - Free Report) , Devon Energy (DVN - Free Report) , and Wix.com Ltd. (WIX - Free Report) . All three sport a positive Zacks Earnings ESP Score and a favorable Zacks Rank.