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Why Earnings Season Could Be Great for Atmos Energy (ATO)
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Investors are always looking for stocks that are poised to beat at earnings season and Atmos Energy Corporation (ATO - Free Report) 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 Atmos Energyis 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 ATO in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 69 cents per share for ATO, compared to a broader Zacks Consensus Estimate of 66 cents per share. This suggests that analysts have very recently bumped up their estimates for ATO, giving the stock a Zacks Earnings ESP of 4.55% heading into earnings season.
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).
Clearly, recent earnings estimate revisions suggest that good things are ahead for Atmos Energyand that a beat might be in the cards for the upcoming report.
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Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Why Earnings Season Could Be Great for Atmos Energy (ATO)
Investors are always looking for stocks that are poised to beat at earnings season and Atmos Energy Corporation (ATO - Free Report) 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 Atmos Energyis 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 ATO in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 69 cents per share for ATO, compared to a broader Zacks Consensus Estimate of 66 cents per share. This suggests that analysts have very recently bumped up their estimates for ATO, giving the stock a Zacks Earnings ESP of 4.55% heading into earnings season.
Atmos Energy Corporation Price and EPS Surprise
Atmos Energy Corporation Price and EPS Surprise | Atmos Energy 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 ATO 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 Atmos Energyand that a beat might be in the cards for the upcoming report.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.