Cabot Oil & Gas Corporation
), an independent oil and gas exploration company, to beat
expectations when it reports second-quarter 2014 financial results
before the opening bell on Jul 24, 2014.
Why a Likely Positive Surprise?
Our proven model shows that Cabot Oil & Gas 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, is +8.00%. This is very
meaningful and a leading indicator of a likely positive earnings
surprise for shares.
Cabot Oil & Gas carries a Zacks Rank #3 (Hold). Note that
stocks with a Zacks Rank #1, 2 and 3 have a significantly higher
chance of beating earnings. The Sell-rated stocks (#4 and 5) should
never be considered going into an earnings announcement.
The combination of Cabot Oil & Gas' Zacks Rank #3 and ESP of
+8.00% makes us confident of an earnings beat in the coming week.
What is Driving the Better-Than-Expected Earnings?
Cabot Oil & Gas has a strong portfolio of assets in the
high-return Marcellus and Eagle Ford Shale plays that leads to
production growth for the company. The first-quarter earnings
results recorded 34% production growth. Further, during its
first-quarter conference call, the company had anticipated
sequential growth. The several wells that came online in the past
quarter should also aid this growth.
Cabot Oil & Gas reports good results from its Eagle Ford oil
acreage. This should be reflected in the upcoming results, as
have rallied and remained above the $100 per barrel threshold.
Additionally, Cabot Oil & Gas has been working on its
efficiency as well. The company reported lower year-over-year unit
costs during the first quarter. If this trend continues, margins
are set to improve, aiding results.
Though the company failed to meet estimates in the first quarter,
it has a trailing four-quarter average positive surprise of
Other Stocks to Consider
Cabot Oil & Gas is not the only stock looking up this
earnings season. We also see likely earnings beats coming from
these three companies in the same sector:
Callon Petroleum Company
) has Earnings ESP of +7.14% and a Zacks Rank #1 (Strong Buy).
Mid-Con Energy Partners, LP
) has Earnings ESP of +8.89% and a Zacks Rank #1.
RSP Permian, Inc.
) has Earnings ESP of +3.70% and a Zacks Rank #1.
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CABOT OIL & GAS (COG): Free Stock Analysis
CALLON PETE-DEL (CPE): Free Stock Analysis
RSP PERMIAN INC (RSPP): Free Stock Analysis
MID-CON ENERGY (MCEP): Free Stock Analysis
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