Surging Earnings Estimates Signal Upside for Pioneer Natural Resources (PXD) Stock

Pioneer Natural Resources (PXD) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The upward trend in estimate revisions for this independent oil and gas company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Pioneer Natural Resources, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $5.01 per share, which is a change of -3.84% from the year-ago reported number.

The Zacks Consensus Estimate for Pioneer Natural Resources has increased 11.54% over the last 30 days, as six estimates have gone higher while one has gone lower.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $22.47 per share, representing a year-over-year change of +8.24%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Pioneer Natural Resources. Over the past month, seven estimates have moved higher compared to one negative revision, helping the consensus estimate increase 10.44%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Pioneer Natural Resources currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Pioneer Natural Resources because of its solid estimate revisions, as evident from the stock's 6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

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Pioneer Natural Resources Company (PXD) : 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.

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