Crescent Energy: Will It Continue to Beat Earnings Estimates?

Are you on the lookout for a stock that is likely to continue its successful earnings beat trend in its next report? Look no further than Crescent Energy (CRGY), a company that operates in the oil and gas sector, specifically within the Zacks Alternative Energy - Other industry.

Crescent Energy has demonstrated a consistent ability to exceed earnings expectations, particularly over its last two reports. It boasts an impressive average earnings surprise of 87.39% for these quarters.

In the most recent quarter, the company reported earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.26 per share by 19.23%. Previously, Crescent Energy was projected to earn $0.18 per share but posted a much higher $0.46, resulting in a remarkable surprise of 155.56%.

Due to this strong history of earnings surprises, estimates for Crescent Energy have been on the rise. This positive trend is reflected in the company's Zacks Earnings ESP (Expected Surprise Prediction), which suggests a good chance of exceeding future earnings expectations, particularly when paired with its solid Zacks Rank.

Research indicates that stocks with a combination of a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better have a nearly 70% likelihood of achieving a positive surprise. This means that out of ten stocks with similar profiles, as many as seven could surpass the consensus estimate.

The Zacks Earnings ESP evaluates the Most Accurate Estimate against the Zacks Consensus Estimate for the specified quarter. The Most Accurate Estimate is a refined version of the Zacks Consensus that accounts for recent changes. The idea is that analysts updating their forecasts right before an earnings release may possess the most relevant and timely information.

Currently, Crescent Energy shows an Earnings ESP of +6.12%, indicating that analysts are increasingly optimistic about the company's earnings potential. This encouraging Earnings ESP, along with a Zacks Rank of #3 (Hold), suggests that another earnings beat may be imminent.

However, it is essential to note that a negative Earnings ESP reading is not necessarily an indication of an impending earnings miss, though it can diminish the reliability of this metric.

While many companies achieve earnings beats, it's important to understand that this may not be the only factor influencing stock price movements. Conversely, some stocks may remain stable even if they fail to meet expectations.

Therefore, checking a company's Earnings ESP ahead of its quarterly announcement is crucial for improving the likelihood of success. Utilize the Earnings ESP Filter to identify the best stocks to consider for purchase or sale before earnings are reported.

Crescent, Earnings, Estimates