Callon Petroleum (CPE) seems a beautiful choose giv
Callon Petroleum (CPE) seems a beautiful choose given a noticeable enchancment within the firm’s earnings outlook. The inventory has been a powerful performer recently, and the momentum may proceed with analysts nonetheless elevating their earnings estimates for the corporate.
Analysts’ rising optimism on the earnings prospects of this unbiased oil and gasoline firm is driving estimates larger, which ought to get mirrored in its inventory value. In spite of everything, empirical analysis reveals a powerful correlation between traits in earnings estimate revisions and near-term inventory value actions. This perception is on the core of our inventory score software — the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Sturdy Purchase) to a Zacks Rank #5 (Sturdy Promote), has a powerful externally-audited monitor document of outperformance, with Zacks #1 Ranked shares producing a mean annual return of +25% since 2008.
Consensus earnings estimates for the subsequent quarter and full yr have moved significantly larger for Callon, as there was robust settlement among the many overlaying analysts in elevating estimates.
The chart beneath reveals the evolution of ahead 12-month Zacks Consensus EPS estimate:
12 Month EPS
Present-Quarter Estimate Revisions
For the present quarter, the corporate is anticipated to earn $1.06 per share, which is a change of -11.67% from the year-ago reported quantity.
The Zacks Consensus Estimate for Callon has elevated 13.08% over the past 30 days, as one estimate has gone larger whereas one has gone decrease.
Present-Yr Estimate Revisions
For the total yr, the corporate is anticipated to earn $5.21 per share, representing a year-over-year change of +82.17%.
The revisions development for the present yr additionally seems fairly promising for Callon, with three estimates shifting larger over the previous month in comparison with no detrimental revisions. The consensus estimate has additionally obtained a lift over this time-frame, growing 11.04%.
Favorable Zacks Rank
The promising estimate revisions have helped Callon earn a Zacks Rank #1 (Sturdy Purchase). The Zacks Rank is a tried-and-tested score software that helps buyers successfully harness the ability of earnings estimate revisions and make the proper funding resolution. You’ll be able to see the whole checklist of right this moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Our analysis reveals that shares with Zacks Rank #1 (Sturdy Purchase) and a couple of (Purchase) considerably outperform the S&P 500.
Backside Line
Buyers have been betting on Callon due to its strong estimate revisions, as evident from the inventory’s 20.8% achieve over the previous 4 weeks. As its earnings progress prospects may push the inventory larger, you might contemplate including it to your portfolio straight away.
Need the newest suggestions from Zacks Funding Analysis? At the moment, you’ll be able to obtain 7 Finest Shares for the Subsequent 30 Days. Click on to get this free report
Callon Petroleum Firm (CPE): Free Inventory Evaluation Report
To learn this text on Zacks.com click on right here.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.