Crescent Energy's Potential for Earnings Surprises in Upcoming Report

Are you on the lookout for a stock that could continue its streak of exceeding earnings expectations in its next report? One company to consider is Crescent Energy (CRGY), which operates in the Zacks Alternative Energy - Other industry.

Crescent Energy has gained attention for its recent trend of surpassing earnings estimates. Particularly noteworthy is the company's performance in its last two reports, where it achieved an average earnings surprise of 87.39%.

In the last reported quarter, Crescent Energy posted earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.26, resulting in a 19.23% surprise. Previously, analysts anticipated earnings of $0.18 per share, but the company delivered a much higher $0.46 per share, leading to an impressive surprise of 155.56%.

The upward trend in earnings estimates for Crescent Energy is partly due to its history of earnings surprises. Additionally, the stock has a positive Zacks Earnings ESP (Expected Surprise Prediction), which is a strong indicator that it may achieve another earnings beat. This positive factor is further enhanced by its solid Zacks Rank.

Research indicates that stocks featuring both a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better tend to produce positive surprises approximately 70% of the time. Therefore, for every 10 stocks falling into this category, it is likely that around seven of them will beat consensus estimates.

The Zacks Earnings ESP calculates the difference between the Most Accurate Estimate and the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is derived from the most current analyst predictions. Analysts who update their estimates just before an earnings release are likely responding to the latest information, which may offer a more accurate picture than earlier consensus predictions.

Currently, Crescent Energy has an Earnings ESP of +6.12%. This figure indicates that analysts have recently become more optimistic about the company's earnings potential. Coupled with a Zacks Rank of #3, it suggests that another earnings beat may be in store.

It's important for investors to note that a negative Earnings ESP does not necessarily mean a company will miss earnings expectations; however, it does reduce the reliability of this measurement.

While many companies frequently beat consensus EPS estimates, it's not the only factor affecting stock movements. Conversely, some stocks may hold steady even if they miss expectations.

Consequently, checking a company's Earnings ESP before its quarterly release is crucial for increasing the likelihood of success. Utilizing an Earnings ESP Filter can help identify the top stocks to buy or sell prior to their earnings announcements.

CrescentEnergy, Earnings, Estimates