We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The energy sector has shown strong momentum in recent months, buoyed by a rise in oil price, thanks to tightening supply conditions, the Middle East conflict and the prospect of higher demand (read: Oil Soars On Israel-Hamas Conflict: Sector ETFs to Gain/Lose).
As such, the ultra-popular ETFs Energy Select Sector SPDR (XLE - Free Report) , Vanguard Energy ETF (VDE - Free Report) , iShares U.S. Energy ETF (IYE - Free Report) and Fidelity MSCI Energy Index ETF (FENY - Free Report) have risen around 4-5% each over the past three months. The uptrend might continue given that most of the oil biggies are expected to surprise on earnings. However, the sector’s earnings are expected to decline 35.5% from the year-ago level.
Let’s delve into the earnings picture of three oil biggies, Exxon Mobil (XOM - Free Report) , Chevron (CVX - Free Report) and ConocoPhillips (COP - Free Report) , which dominate the abovementioned funds’ portfolio and have the power to move the funds up or down in the coming days. All three companies are slated to release earnings before the opening bell on Oct 27. These firms collectively make up 45.4% of FENY, 45.2% of VDE, 44.9% of XLE and 44.3% of IYE (see: all the Energy ETFs here).
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Earnings Prediction
Exxon Mobil has an Earnings ESP of 0.00% and a Zacks Rank #2. The company witnessed a positive earnings estimate revision of a penny over the past seven days for the to-be-reported quarter. The stock delivered an average earnings surprise of 5.22% for the last four quarters. The Zacks Consensus Estimate indicates an earnings decline of 46.3% from the year-ago quarter. Exxon Mobil has a VGM Score of B.
Chevron has an Earnings ESP of 0.00% and a Zacks Rank #1. It has witnessed a positive earnings estimate revision of 11 cents over the past seven days for the to-be-reported quarter. The company delivered an average earnings surprise of 4.79% in the last four quarters. The Zacks Consensus Estimate for the company’s earnings indicates a substantial decline of 33.8% year over year. The stock has a VGM Score of A (read: A Complete Guide to Oil Commodity ETFs).
ConocoPhillips has an Earnings ESP of +0.50% and a Zacks Rank #2. The company saw a negative earnings estimate revision of a penny over the past seven days for the to-be-reported quarter. The stock delivered an average earnings surprise of 4.47% for the last four quarters. The Zacks Consensus Estimate indicates an earnings decline of 43.3% from the year-ago earnings. COP has a VGM Score of A.
Conclusion
Two of the three firms saw positive earnings estimate revisions before the earnings announcements. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. XLE and VDE have a Zacks ETF Rank #1, while IYE has a Zacks Rank #2. FENY carries a Zacks Rank #3.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What's in Store for Energy ETFs in Q3 Earnings?
The energy sector has shown strong momentum in recent months, buoyed by a rise in oil price, thanks to tightening supply conditions, the Middle East conflict and the prospect of higher demand (read: Oil Soars On Israel-Hamas Conflict: Sector ETFs to Gain/Lose).
As such, the ultra-popular ETFs Energy Select Sector SPDR (XLE - Free Report) , Vanguard Energy ETF (VDE - Free Report) , iShares U.S. Energy ETF (IYE - Free Report) and Fidelity MSCI Energy Index ETF (FENY - Free Report) have risen around 4-5% each over the past three months. The uptrend might continue given that most of the oil biggies are expected to surprise on earnings. However, the sector’s earnings are expected to decline 35.5% from the year-ago level.
Let’s delve into the earnings picture of three oil biggies, Exxon Mobil (XOM - Free Report) , Chevron (CVX - Free Report) and ConocoPhillips (COP - Free Report) , which dominate the abovementioned funds’ portfolio and have the power to move the funds up or down in the coming days. All three companies are slated to release earnings before the opening bell on Oct 27. These firms collectively make up 45.4% of FENY, 45.2% of VDE, 44.9% of XLE and 44.3% of IYE (see: all the Energy ETFs here).
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Earnings Prediction
Exxon Mobil has an Earnings ESP of 0.00% and a Zacks Rank #2. The company witnessed a positive earnings estimate revision of a penny over the past seven days for the to-be-reported quarter. The stock delivered an average earnings surprise of 5.22% for the last four quarters. The Zacks Consensus Estimate indicates an earnings decline of 46.3% from the year-ago quarter. Exxon Mobil has a VGM Score of B.
Chevron has an Earnings ESP of 0.00% and a Zacks Rank #1. It has witnessed a positive earnings estimate revision of 11 cents over the past seven days for the to-be-reported quarter. The company delivered an average earnings surprise of 4.79% in the last four quarters. The Zacks Consensus Estimate for the company’s earnings indicates a substantial decline of 33.8% year over year. The stock has a VGM Score of A (read: A Complete Guide to Oil Commodity ETFs).
ConocoPhillips has an Earnings ESP of +0.50% and a Zacks Rank #2. The company saw a negative earnings estimate revision of a penny over the past seven days for the to-be-reported quarter. The stock delivered an average earnings surprise of 4.47% for the last four quarters. The Zacks Consensus Estimate indicates an earnings decline of 43.3% from the year-ago earnings. COP has a VGM Score of A.
Conclusion
Two of the three firms saw positive earnings estimate revisions before the earnings announcements. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. XLE and VDE have a Zacks ETF Rank #1, while IYE has a Zacks Rank #2. FENY carries a Zacks Rank #3.