5 Oil & Gas Stocks Likely To Surpass Q4 Earnings Estimates

Investing in companies with earnings beat prospects can fetch in handsome returns for investors. This is because a stock generally surges on a positive surprise.

How to Identify Potential Winners?

With a multitude of energy firms thronging the investment space, it is by no means an easy task for investors to select stocks with strong promises to deliver higher-than-estimated earnings. While it is impossible to be sure about such outperformers, our proprietary methodology makes the choice fairly simple.

Our research shows that for stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), chances of a positive earnings surprise are as huge as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP is an important ingredient of our proven model, which along with a top Zacks Rank creates the perfect combination to determine stocks with the best chances to pull off a positive surprise in the upcoming earnings announcements. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

Our Choices

Tulsa, OK-based Magellan Midstream Partners, L.P. (MMP - Free Report) is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. The partnership primarily transports, stores and distributes refined petroleum products plus to a certain extent, ammonia.

The firm has an Earnings ESP of +3.81% and a Zacks Rank #3. It is scheduled to release earnings on Jan 30, before the market opens.

Magellan Midstream Partners, L.P. Price, and EPS Surprise

(Click on image to enlarge)

Magellan Midstream Partners, L.P. Price and EPS Surprise

Magellan Midstream Partners, L.P. price-eps-surprise | Magellan Midstream Partners, L.P. Quote

You may also consider NuStar Energy L.P. (NS - Free Report), which has a Zacks Rank #2 and an Earnings ESP of +1.32%. This San Antonio, TX-based master limited partnership engages in transportation and storage of crude oil as well as refined products in the United States, the Netherlands Antilles, Canada, Mexico and the U.K. The entity is set to release fourth-quarter earnings on Feb 5 before market open.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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