4 Energy Stocks Set To Beat Q3 Earnings

The Q3 earnings season is approaching its end, with 65.4% S&P 500 companies having already released results. The season has also seen releases from 67.7% of the companies in the energy space, belonging to the index. According to the latest  Earnings Trends, total earnings for these energy firms are up 127.2% from the same period last year on 18.7% higher revenues. Notably, 76.2% of the companies have reported positive earnings surprises so far, with 71.4% beating revenue estimates.

Our report also shows that energy is the only sector among the 16 representing the S&P 500 index to witness triple-digit earnings growth in Q3.

Although majority of the key energy players have reported their quarterly numbers, there are still a few energy companies that are expected to come up with solid results. These companies can make valuable addition to your portfolio now.

Oil Recovers in Q3

As per macrotrends, The West Texas Intermediate (WTI) crude saw a 12.2% gain during the third quarter of 2017 after two consecutive quarters of decline this year. Notably, this is the highest quarterly gain since the April-to-June quarter of 2016.

According to The U.S. Energy Information Administration (EIA), average monthly prices for each month of the third quarter of 2017 were higher than the year-ago comparable period. Lower global crude inventory helped ease the crude supply glut concern which primarily supported the oil price rally in the third quarter.

Oversupply Concerns Ease in Q3

Per the EIA, during the July-to-September quarter of this year, worldwide oil inventories declined by 500,000 barrels per day (B/D). With this, the inventory level fell for three quarters in a row.

According to The Oil & Gas Journal, Organization of the Petroleum Exporting Countries (OPEC) produced an average of 32.9 million B/D in the third quarter as compared to last November’s 33.4 million B/D. Thus, it can be safely concluded that the leading crude exporter’s landmark production cut deal primarily supported the draws in global crude inventory.

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