Should You Buy Nine Energy Service (NINE) Ahead of Earnings?
Investors are always looking for stocks that are
poised to beat at earnings season and Nine Energy Service, Inc.
NINE 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 Nine Energy Service is seeing favorable earnings
estimate revision activity as of late, which is generally a
precursor to 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 NINE in this report.
In fact, the Most Accurate Estimate for the current quarter is
currently at 58 cents per share for NINE, compared to a broader
Zacks Consensus Estimate of 57 cents per share. This suggests that
analysts have very recently bumped up their estimates for NINE,
giving the stock a Zacks Earnings ESP of +0.47% heading into
earnings season.
Nine Energy Service, Inc. Price and EPS Surprise
Nine Energy Service, Inc. Price and EPS Surprise | Nine Energy Service, Inc. 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 NINE has a Zacks Rank #3 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 Nine Energy Service and that a beat might be
in the cards for the upcoming report.
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