Looking for stocks with positive earnings momentum? Check out these 2 oil and energy stock names

Quarterly financial reports play a key role on Wall Street because they help investors see how a company is doing and what might happen in the near future. And of all the metrics and results to consider, earnings are one of the most important.

The amount you earn is crucial in itself, but achieving your bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big hit could help the stock rise even more.

2 stocks to add to your watchlist

The purpose of the Zacks Earnings ESP, or Expected Surprise Rate, is to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst re-evaluates his or her earnings estimate ahead of an earnings release, it likely means he or she has new information that could be more accurate. The essence of the ESP model is to compare the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the predicted expected surprise.

The final step today will be to look at stocks that meet our ESP requirements. Valero Energy (VLO) The company will earn a Zacks Rank #1 within 30 days of its next quarterly report release on July 28, 2022, and its Most Accurate Estimate is $7.58 per share.

Taking the percentage difference between the Most Accurate Estimate of $7.58 and the Zacks Consensus Estimate of $6.33, Valero Energy has an Earnings ESP of 19.76%.

VLO is just one of a large group of Oils-Energy companies with a positive ESP. Williams Companies, Inc. (WMB) is another qualifying stock you may want to consider.

Williams Companies, Inc. is a Zacks Rank #3 (Hold) stock and the company is gearing up to announce earnings on August 1, 2022. WMB’s most accurate forecast is $0.38 per share 34 days before its next earnings release.

Williams Companies, Inc. The Earnings ESP is currently 2.46% after adjusting for the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate of $0.37.

Positive ESP indicators for VLO and WMB may be a signal that a positive earnings surprise for both companies is on the horizon.

Find stocks to buy or sell before they’re reported

Use the Zacks Earnings ESP filter to view stocks with the highest probability of producing a positive or negative buying or selling surprise before they report for profitable trading during earnings season. Check here >>

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Valero Energy Corporation (VLO): Free Stock Analysis Report

Williams Companies, Inc. The (WMB): Free Stock Analysis Report

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