Markets

Should You Buy Anadarko Petroleum (APC) Ahead of Earnings?

Investors are always looking for stocks that are poised to beat at earnings season and Anadarko Petroleum CorporationAPC 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 Anadarko Petroleum is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an 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 APC in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 47 cents per share for APC, compared to a broader Zacks Consensus Estimate of a loss of 51 cents per share. This suggests that analysts have very recently bumped up their estimates for APC, giving the stock a Zacks Earnings ESP of 7.84% heading into earnings season.

Anadarko Petroleum Corporation Price and EPS Surprise

Anadarko Petroleum Corporation Price and EPS Surprise | Anadarko Petroleum Corporation 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 APC has a Zacks Rank #2 (Buy) 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 Anadarko Petroleum, and that a beat might be in the cards for the upcoming report.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>

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 report

Anadarko Petroleum Corporation (APC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More