Investors are always looking for stocks that are poised to beat at earnings season and Plains All American Pipeline, L.P.PAA may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Plains All American Pipeline is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to earnings beat. After all, analysts raising estimates right before earnings - with the most up-to-date information possible - is a pretty good indicator of some favorable trends underneath the surface for PAA in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 40 cents per share for PAA, compared to a broader Zacks Consensus Estimate of 37 cents per share. This suggests that analysts have very recently bumped up their estimates for PAA, giving the stock a Zacks Earnings ESP of +6.28% heading into earnings season.
Plains All American Pipeline, L.P. Price and EPS Surprise
Plains All American Pipeline, L.P. Price and EPS Surprise | Plains All American Pipeline, L.P. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here ).
Given that PAA has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Clearly, recent earnings estimate revisions suggest that good things are ahead for Plains All American Pipeline, and that a beat might be in the cards for the upcoming report.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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 reportPlains All American Pipeline, L.P. (PAA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research