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Should You Buy Murphy Oil (MUR) Ahead of Earnings?

Investors are always looking for stocks that are poised to beat at earnings season and Murphy Oil CorporationMUR 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 Murphy Oil 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 MUR in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 15 cents per share for MUR, compared to a broader Zacks Consensus Estimate of a loss of 19 cents per share. This suggests that analysts have very recently bumped up their estimates for MUR, giving the stock a Zacks Earnings ESP of 21.05% heading into earnings season.

Murphy Oil Corporation Price and EPS Surprise

Murphy Oil Corporation Price and EPS Surprise | Murphy Oil 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 MUR has a Zacks Rank #3 (Hold) 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 Murphy Oil, and that a beat might be in the cards for the upcoming report.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

Investors are always looking for stocks that are poised to beat at earnings season and Murphy Oil Corporation (MUR)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 Murphy Oil 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 MUR in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 15 cents per share for MUR, compared to a broader Zacks Consensus Estimate of a loss of 19 cents per share. This suggests that analysts have very recently bumped up their estimates for MUR, giving the stock a Zacks Earnings ESP of 21.05% heading into earnings season.

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 MUR has a Zacks Rank #3 (Hold) 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 Murphy Oil, and that a beat might be in the cards for the upcoming report.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

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

Murphy Oil Corporation (MUR): Free Stock Analysis Report

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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.

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