- 21 февраля 2018, 17:50
- Zacks Investment Research
Eversource Energy ES is expected to beat earnings as it reports fourth-quarter 2017 results before the opening bell on Feb 23. Last quarter, the company reported a negative earnings surprise of 2.38%.
Why a Likely Positive Surprise
Our proven model shows that Eversource is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Eversource has the right combination of factors, as you will see below.
Zacks ESP: Eversource has an Earnings ESP of +0.66%. This is because the Most Accurate estimate is pegged higher at 77 cents compared with the Zacks Consensus Estimate of 76 cents.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Eversource carries a Zacks Rank #3. The combination of the company’s rank combined with positive ESP makes up optimistic about an earnings beat this season.
As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
Eversource Energy will gain from its cost savings initiatives and have a positive impact on its margins. Favorable weather conditions in its service territories might have a positive effect on demand and earnings.
Similar to the first nine months of 2017, the company is expected to gain from higher transmission earnings.
The Zacks Consensus Estimate for revenues is pegged at $1,826 million, reflecting an increase of 2.8% year over year. Additionally, the Zacks Consensus Estimate for earnings per share also reflects a year-over-year increase of 5.5%
Other Stocks to Consider
Apart from Eversource, investors can also consider a few players from the Zacks Utility sector that have the right combination of elements to post an earnings beat this quarter.
Entergy Corporation ETR has an Earnings ESP of +19.05%. It carries a Zacks Rank #3 and is expected to report fourth-quarter 2017 results on Feb 23.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Edison International EIX has an Earnings ESP of +1.08%. It carries a Zacks Rank #3 and is expected to report fourth-quarter 2017 results on Feb 22.
Public Service Enterprise Group PEG has an Earnings ESP of +1.92%. It carries a Zacks Rank #3 and is anticipated to report fourth-quarter 2017 results on Feb 23.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Entergy Corporation (ETR): Free Stock Analysis Report
Edison International (EIX): Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG): Free Stock Analysis Report
Eversource Energy (ES): Free Stock Analysis Report
To read this article on Zacks.com click here.