Is PAA a buy before its earnings report


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Before plunging into whether PAA is a buy before its earnings report, let's analyze the stock's current position and the expectations surrounding its earnings.
- Current Price and Recent Performance:
- As of the latest data, PAA's closing price is $17.781.
- Over the last 52 weeks, PAA's shares have appreciated by 14.3%, indicating a positive long-term trend2.
- Earnings Estimates and Revenue Expectations:
- The consensus EPS estimate for Q3 2024 is $0.31, which represents a year-over-year decrease of 11.4%3.
- The estimated revenue for the same period is $13.09 billion, reflecting an 8.4% increase year-over-year4.
- Historically, PAA has beaten EPS estimates 75% of the time and revenue estimates 25% of the time, suggesting a strong likelihood of positive surprises3.
- Earnings Release Schedule and Market Anticipation:
- PAA's earnings report for Q3 2024 is scheduled for November 8, 2024, which is imminent5.
- Analysts have revised their EPS estimates with 2 upward revisions and 4 downward revisions over the last 3 months, indicating a mixed outlook3.
- Investors are hopeful for PAA to surpass estimates and provide positive guidance for the next quarter2.
- Historical Price Movements Post-Earnings: Upon reviewing the historical performance, there was no significant price change following the earnings release in the last quarter, suggesting that the market may have already priced in the expectations2.
- Analyst Ratings and Price Targets: Recent analyst ratings and price targets indicate a cautious outlook, with a consensus target price of $19.82, a slight upside from the current price6. This suggests that while there is potential for growth, analysts are not yet convinced of a strong immediate upside.
- Conclusion and Recommendation: Given the mixed estimates, the potential for positive surprises, and the analysts' cautious stance, it is reasonable to hold a neutral stance on PAA until the earnings report. If the earnings exceed expectations and the guidance for Q4 2024 is robust, the stock could be considered a buy. However, if the earnings fall short or the guidance is lackluster, the stock may face downward pressure. Investors should closely monitor the earnings report and its implications for future performance.
Source:
1.
PAA Closing Price
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