Why ProPetro Holding (PUMP) Could Beat Earnings Estimates Again

Looking for a stock that might be in a good position to beat earnings at its next report? Consider ProPetro Holding Corp. (NYSE:PUMP) , a firm in the Oil and Gas - Field Services industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, PUMP has beaten estimates by at least 25% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, PUMP was expected to post 4 cents per share, while it actually produced 6 cents per share, a beat of 50%. Meanwhile, for the most recent quarter, the company looked to deliver 20 cents per share, when it actually saw 25 cents per share instead, representing a 25% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for ProPetro Holding. In fact, the Earnings ESP for PUMP is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for PUMP, as the firm currently has a Zacks Earnings ESP of 13.39%, so another beat could be around the corner.

This is particularly true when you consider that PUMP has a great Zacks Rank #1 (Strong Buy), which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that PUMP could see another beat at its next report, especially if recent trends are any guide.

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