We expect WPX Energy, Inc. (NYSE:WPX) to beat estimates when it reports fourth-quarter 2018 results on Feb 20, after market close. In the last reported quarter, the company delivered a negative surprise of 22.22%.
What Does the Zacks Model Unveil?
Our proven model shows that WPX Energy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.
Earnings ESP: The company’s Earnings ESP is +3.80%. This is a meaningful and leading indicator of a likely positive surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: WPX Energy currently carries a Zacks Rank #3. The combination of WPX Energy’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Factors to Consider
WPX Energy is experiencing continuous production improvement from its high-quality assets in the Delaware and Williston Basins. Focus on increasing oil production is boosting the prospects of the company. Hidatsa North wells, which came online during late third quarter, will likely be a strong contributor to Williston Basin’s oil growth in the fourth quarter.
The strategic transformation of WPX Energy via selling off its non-core assets and lowering long-term debts is likely to have a positive impact on fourth-quarter results. The company is expanding midstream operation in the Permian Basin, which will likely boost its performance.
Other Stocks to Consider
WPX Energy is not the only company that is looking up this earnings season. One can also consider the following companies from the same industry that have the right combination of the key ingredients as well.
Concho Resources Inc. (NYSE:CXO) has an Earnings ESP of +0.25% and carries a Zacks Rank #3. It is slated to report fourth-quarter 2018 results on Feb 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy, Inc. (NYSE:LNG) has an Earnings ESP of +84.51% and a Zacks Rank #3. It is scheduled to report fourth-quarter 2018 results on Feb 26.
Southwestern Energy Company (NYSE:SWN) has an Earnings ESP of +4.60% and carries a Zacks Rank #3. It is slated to report fourth-quarter 2018 results on Feb 28.
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Southwestern Energy Company (SWN): Free Stock Analysis Report
Cheniere Energy, Inc. (LNG): Free Stock Analysis Report
Concho Resources Inc. (CXO): Free Stock Analysis Report
WPX Energy, Inc. (WPX): Free Stock Analysis Report
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