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Will Parsley Energy (PE) Crush Estimates at Its Next Earnings Report?


Looking for a stock that might be in a good position to beat earnings at its next report? Consider Parsley Energy, Inc. PE, a firm in the Oil & Gas – US Exploration & Production industry, 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, PE has beaten estimates by at least 80% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, PE was expected to post a loss of 10 cents per share, while it actually produced a loss of 2 cents per share, a beat of 80%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 2 cents per share, when it actually saw earnings of 4 cents per share instead, representing a significant positive surprise.

PARSLEY ENGY-A Price and EPS Surprise

PARSLEY ENGY-A Price and EPS Surprise | PARSLEY ENGY-A Quote

Thanks in part to this history, recent estimates have been moving higher for Parsley Energy. In fact, the Earnings ESP for PE 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 PE, as the firm currently has a Zacks Earnings ESP of 33.33%, so another beat could be around the corner.

This is particularly true when you consider that PE has a great Zacks Rank #2 (Buy) 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 PE could see another beat at its next report, especially if recent trends are any guide.

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