2 Stocks to Watch for Earnings Surprises in Oils-Energy Sector

Investors should consider taking advantage of Eni SpA and BP stocks due to their positive earnings surprise predictions. Eni SpA has a Zacks Rank #3 and a 6.05% Earnings ESP, while BP has a Zacks Rank #3 and a 4.27% Earnings ESP. These positive ESP metrics may indicate a positive earnings surprise for both stocks.

Investors are advised to consider taking advantage of Eni SpA (NYSE:E) and BP (BP) stocks, given the positive earnings surprise predictions from analysts. Both companies have shown promising signs of growth and profitability.

Eni SpA, an oil and gas exploration company, has a Zacks Rank of #3 and an Earnings ESP (Earnings Surprise Prediction) of 6.05%. This positive ESP indicates a potential positive earnings surprise for the company. Additionally, Eni SpA's recent stock holdings have been on the rise, with major investors such as QRG Capital Management Inc. increasing their stakes significantly QRG Capital Management Inc. Grows Stock Holdings in Eni SpA $E^[1].

BP, another major oil and gas company, also has a Zacks Rank of #3 and an Earnings ESP of 4.27%. The upcoming earnings release for BP is expected to be of great interest to investors, with analysts predicting earnings of $0.7 per share, representing a year-over-year decline of 15.66%. Despite this, the company's revenue is expected to increase by 30.42% BP (BP) Stock Declines While Market Improves: Some Information for Investors^[2].

While both companies have shown signs of growth, it is important for investors to consider their individual risk tolerance and investment goals. The Zacks Rank system, which takes into account estimate revisions and provides an actionable rating system, has a proven track record of outperformance, with #1 stocks returning an average of +25% annually since 1988 BP (BP) Stock Declines While Market Improves: Some Information for Investors^[2].

Investors should also consider the valuation metrics of these companies. Eni SpA has a Forward P/E ratio of 21.80, while BP has a Forward P/E ratio of 13.02. The PEG ratio for Eni SpA is 2.07, and for BP, it is 2.07, indicating that both companies are trading at a premium to their respective industries [^1, 2].

In conclusion, investors should closely monitor the earnings releases and valuation metrics of Eni SpA and BP. The positive ESP metrics may indicate a potential positive earnings surprise for both stocks, making them worth considering for investors seeking growth opportunities in the oil and gas sector.