Will Crescent Energy (CRGY) Beat Earnings Estimates Again?

If you're searching for a stock that appears poised to continue its streak of beating earnings estimates, you might want to take a closer look at Crescent Energy (CRGY). This company operates within the Zacks Alternative Energy - Other sector and has gained attention for its impressive earnings performance.

Crescent Energy has established a remarkable pattern of surpassing earnings expectations, particularly in its last two quarterly reports. The average surprise for these reports stands at an impressive 87.39%. Just to illustrate, for its most recent quarter, Crescent Energy reported earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.26 per share. This equates to a positive surprise of 19.23%. In the quarter prior, the company's expected earnings were $0.18 per share, but it delivered a much stronger $0.46 per share, resulting in an astonishing surprise of 155.56%.

As a result of this impressive track record, estimates for Crescent Energy have been on the rise. The favorable trend is reflected in the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction). This indicator is a reliable sign of potential earnings beats, especially when paired with a solid Zacks Rank.

Research underscores the fact that stocks featuring a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better tend to produce earnings surprises nearly 70% of the time. In simpler terms, if you have ten stocks with this profile, as many as seven could outperform consensus estimates.

The Zacks Earnings ESP compares the Most Accurate Estimate of earnings to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a refined version of the Zacks Consensus, tied to recent changes and often regarded as more accurate. The rationale is that analysts adjusting their estimates just before the earnings release possess the most up-to-date information, which may be more precise than earlier consensus estimates.

Currently, Crescent Energy boasts an Earnings ESP of +6.12%, indicating that analysts have recently taken a positive stance on the company’s earnings outlook. When this positive Earnings ESP is coupled with a Zacks Rank of #3 (Hold), it suggests that another earnings beat could be imminent for the company.

However, it is crucial to note that a negative Earnings ESP does not necessarily predict a miss, but it can diminish the reliability of this metric. While many companies may beat the EPS consensus, this achievement isn't the sole reason behind stock price movements. Conversely, some stocks may remain stable even after missing consensus estimates.

Therefore, to enhance the chances of success, it's essential to review a company’s Earnings ESP well ahead of its quarterly results. Utilizing the Earnings ESP Filter can help uncover the best stocks to consider buying or selling before reports are released.

Earnings, Estimates, Stocks