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Why Helmerich & Payne (HP) Might be Well Poised for a Surge
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Helmerich & Payne (HP - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this oil and gas well-drilling contractor, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Helmerich & Payne, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.85 per share for the current quarter, which represents a year-over-year change of -32.54%.
The Zacks Consensus Estimate for Helmerich & Payne has increased 9.49% over the last 30 days, as three estimates have gone higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $3.51 per share for the full year, which represents a change of -15.42% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Helmerich & Payne. Over the past month, one estimate has moved higher compared to one negative revision, helping the consensus estimate increase 5.81%.
Favorable Zacks Rank
The promising estimate revisions have helped Helmerich & Payne earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Helmerich & Payne have attracted decent investments and pushed the stock 5.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Why Helmerich & Payne (HP) Might be Well Poised for a Surge
Helmerich & Payne (HP - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this oil and gas well-drilling contractor, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Helmerich & Payne, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.85 per share for the current quarter, which represents a year-over-year change of -32.54%.
The Zacks Consensus Estimate for Helmerich & Payne has increased 9.49% over the last 30 days, as three estimates have gone higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $3.51 per share for the full year, which represents a change of -15.42% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Helmerich & Payne. Over the past month, one estimate has moved higher compared to one negative revision, helping the consensus estimate increase 5.81%.
Favorable Zacks Rank
The promising estimate revisions have helped Helmerich & Payne earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Helmerich & Payne have attracted decent investments and pushed the stock 5.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.