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Chevron & 2 Energy Stocks Poised to Beat Q2 Earnings Estimates
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We are now at the beginning of the second-quarter earnings season, with the energy giants yet to report results. Since the energy business environment was favorable in the June quarter, thanks to high commodity prices, driven by the Iran war, Baker Hughes (BKR - Free Report) , Chevron Corporation (CVX - Free Report) and Cactus, Inc. (WHD - Free Report) are likely to report better-than-expected earnings.
High Q2 Oil Prices
To have an idea of how oil prices behaved in the June quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for April, May and June of this year were $100.32 per barrel, $102.13 per barrel and $84.81 per barrel, respectively, per EIA data. Commodity prices were $63.54 per barrel, $62.17 per barrel and $68.17 per barrel, respectively, in April, May and June of 2025, according to the EIA.
Importantly, a constructive oil-price backdrop, driven by the Iran war, is expected to have aided the exploration and production businesses in the June quarter of this year. This, in turn, might have aided demand for oilfield services and drilling activities. However, the high crude price is likely to have weighed on refiners in the second quarter, since they buy raw crude to produce final products.
How to Pick the Right Stocks?
Given the backdrop, it is by no means an easy task for investors to arrive at picks that have the potential to deliver better-than-expected earnings from the vast universe of energy stocks.
While there is no fool-proof method of picking outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks that have high chances of delivering a surprise in their upcoming earnings announcement. Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.
The Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our Choices
Baker Hughes, a leading oilfield service player, is likely to have benefited from favorable commodity prices.
Chevron is a large-cap energy player with an integrated business model. The firm is scheduled to report earnings on July 31, has an Earnings ESP of +1.84% and a Zacks Rank of 3.
Cactus is a leading manufacturer and provider of engineered pressure-control and spoolable-pipe technologies. The company is likely to have gained from favorable oil prices. The firm, scheduled to release second-quarter earnings on July 29, has an Earnings ESP of +7.04% and a Zacks Rank #3.
View the Zacks #1 Rank List
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Chevron & 2 Energy Stocks Poised to Beat Q2 Earnings Estimates
We are now at the beginning of the second-quarter earnings season, with the energy giants yet to report results. Since the energy business environment was favorable in the June quarter, thanks to high commodity prices, driven by the Iran war, Baker Hughes (BKR - Free Report) , Chevron Corporation (CVX - Free Report) and Cactus, Inc. (WHD - Free Report) are likely to report better-than-expected earnings.
High Q2 Oil Prices
To have an idea of how oil prices behaved in the June quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for April, May and June of this year were $100.32 per barrel, $102.13 per barrel and $84.81 per barrel, respectively, per EIA data. Commodity prices were $63.54 per barrel, $62.17 per barrel and $68.17 per barrel, respectively, in April, May and June of 2025, according to the EIA.
Importantly, a constructive oil-price backdrop, driven by the Iran war, is expected to have aided the exploration and production businesses in the June quarter of this year. This, in turn, might have aided demand for oilfield services and drilling activities. However, the high crude price is likely to have weighed on refiners in the second quarter, since they buy raw crude to produce final products.
How to Pick the Right Stocks?
Given the backdrop, it is by no means an easy task for investors to arrive at picks that have the potential to deliver better-than-expected earnings from the vast universe of energy stocks.
While there is no fool-proof method of picking outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks that have high chances of delivering a surprise in their upcoming earnings announcement. Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.
The Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our Choices
Baker Hughes, a leading oilfield service player, is likely to have benefited from favorable commodity prices.
BKR has an Earnings ESP of +1.34% and currently carries a Zacks Rank #3. It is scheduled to release second-quarter results on July 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baker Hughes Company Price and EPS Surprise
Baker Hughes Company price-eps-surprise | Baker Hughes Company Quote
Chevron is a large-cap energy player with an integrated business model. The firm is scheduled to report earnings on July 31, has an Earnings ESP of +1.84% and a Zacks Rank of 3.
Chevron Corporation Price and EPS Surprise
Chevron Corporation price-eps-surprise | Chevron Corporation Quote
Cactus is a leading manufacturer and provider of engineered pressure-control and spoolable-pipe technologies. The company is likely to have gained from favorable oil prices. The firm, scheduled to release second-quarter earnings on July 29, has an Earnings ESP of +7.04% and a Zacks Rank #3.
Cactus, Inc. Price and EPS Surprise
Cactus, Inc. price-eps-surprise | Cactus, Inc. Quote