What are we looking for?
With second-quarter earnings season upon us, yesterday we looked at what sectors have the best earnings momentum. Or, in other words, how much earnings estimates have risen or fallen for each sector in the last month or two. Today, we'll drill down into the oil sector, looking for companies that have had their earnings estimates boosted sharply in the last couple months.
How we did the screen
We used StarMine, which gathers earnings estimates data from analysts. We looked at how much earnings estimates have risen or fallen in the past 30 and 60 days for all 135 stocks in the Canadian energy sector. We looked at estimates for the next quarter, the next four quarters and the next eight quarters. We sorted the sectors by how much the estimates for the next four quarters have risen or fallen over the past 30 days. We also accepted companies of all market capitalizations.
What did we find out?
Let's look at the company at the top of the list. Two months ago, Jennings Capital Inc. increased its production and cash flow estimates for Calvalley Petroleum Inc. It also increased reserve assumptions. Jennings analyst Greg Chornoboy then increased his oil price assumptions last month (2009 went to $59 [U.S.]a barrel from $46.50) and later bumped his price target for Calvalley to $3.25 from $3.