Independent energy explorer
Canadian Natural Resources Ltd.
) is slated to report fourth-quarter 2013 results on Mar 6, 2014.
In the last quarter, the company delivered a 9.57% negative
surprise. Let's see how things are shaping up for this
Why a Likely Positive Surprise?
Our proven model shows that Canadian Natural is likely to beat
earnings because it has the right combination of two key
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +1.79% for
Canadian Natural. This is a meaningful and leading indicator of a
likely positive earnings surprise.
Canadian Natural currently has a Zacks Rank #3 (Hold). Note that
stocks with Zacks Ranks of #1, 2 or 3 have a significantly higher
chance of beating earnings.
The combination of Canadian Natural's Zacks Rank #3 and +1.79%
ESP makes us confident of positive earnings beat this
What is Driving the Better-Than-Expected
Canadian Natural has a broad portfolio of low-risk exploration
and development projects that yield long-term volume growth at
above-average rates. We appreciate the company's diverse asset
base both geographically and in terms of product, comprising
approximately 30% natural gas and 70% crude oil with the bulk of
production located in Group of Eight (G8) countries. We believe
this significantly reduces Canadian Natural's risk profile and
lends stability to its performance.
Moreover, Canadian Natural's strong, balanced and diverse
asset portfolio, combined with its focus on low-cost operations,
allows it to generate substantial free cash flow even in a low
price environment. Additionally, with most of the company's
production generated from North America, Canadian Natural
counters political risk associated with operations in unstable
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter:
Matador Resources Co.
) with earnings ESP of +7.14% and Zacks Rank #3.
Quicksilver Resources Inc.
) with earnings ESP of +25.00% and Zacks Rank #3.
) with earnings ESP of +2.78% and Zacks Rank #3.
CDN NTRL RSRCS (CNQ): Free Stock Analysis
QUICKSILVER RES (KWK): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
YPF SA D CV ADR (YPF): Free Stock Analysis
To read this article on Zacks.com click here.