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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Pioneer Natural Resources Company (NYSE:PXD) , a firm in the Oil and Gas - Exploration and Production - United States, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, PXD has beaten estimates by at least 60% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, PXD expected to post earnings of 11 cents per share, while it actually produced earnings of 21 cents per share, a beat of 90.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 30 cents per share, when it actually produced earnings of 48 cents per share instead, representing a 60% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for Pioneer Natural Resources. In fact, the Earnings ESP for PXD is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for PXD, as the firm currently has a Zacks Earnings ESP of +24.96%, so another beat could be around the corner.
This is particularly true when you consider that PXD has a great Zacks Rank #3 (Hold) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that PXD could see another beat at its next report, especially if recent trends are any guide.
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Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
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