Will Crescent Energy (CRGY) Continue Its Earnings Beat Streak?

If you're looking for a stock that could potentially continue its streak of beating earnings estimates, you might want to take a closer look at Crescent Energy (CRGY). This company operates in the oil and gas sector, specifically belonging to the Zacks Alternative Energy - Other industry.

Crescent Energy has a notable history of surpassing earnings expectations. In particular, it has stood out in its recent reports, achieving an average surprise of 87.39% over the last two quarters.

In its most recent earnings report, Crescent Energy reported earnings of $0.31 per share, which exceeded the Zacks Consensus Estimate of $0.26 per share, resulting in a surprise of 19.23%. The quarter before that, the company was expected to earn $0.18 per share but actually reported earnings of $0.46 per share, providing a remarkable surprise of 155.56%.

What has contributed to Crescent Energy's impressive performance are the upward trends in earnings estimates, influenced significantly by its earnings surprise history. This trend is paired with a positive Zacks Earnings ESP (Expected Surprise Prediction), which serves as a strong indicator for a potential earnings beat, especially when accompanied by a respectable Zacks Rank.

Research indicates that stocks that hold a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better succeed in posting positive earnings surprises nearly 70% of the time. To put it another way, among ten stocks with this combination, you could expect as many as seven to exceed the consensus estimate.

The Zacks Earnings ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate for the reporting quarter. The Most Accurate Estimate is considered to be more refined, as it reflects the latest information from analysts who may have revised their estimates just before the earnings announcement.

Crescent Energy currently shows an Earnings ESP of +6.12%. This positive reading suggests that analysts have recently gained confidence in the company's earnings potential. When combined with a Zacks Rank of #3 (Hold), this indicates a high likelihood of another earnings beat on the horizon.

It's important for investors to note that while a negative Earnings ESP does not necessarily predict an earnings miss, it does diminish the predictive strength of this metric.

Many companies succeed in beating the consensus EPS estimate, but this is not the only factor influencing their stock prices. Conversely, some stocks may remain stable even if they do not meet consensus estimates. Therefore, checking a company's Earnings ESP leading up to its quarterly report can significantly enhance your chances of success. Use the Earnings ESP Filter tool to identify the best stocks for buying or selling prior to their earnings announcements.

Crescent, Energy, Earnings