Cabot Oil (COG - Free Report)	could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The upward trend in estimate revisions for this independent oil and gas company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
For Cabot, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The company is expected to earn $0.68 per share for the current quarter, which represents a year-over-year change of +142.86%.
The Zacks Consensus Estimate for Cabot has increased 8.42% over the last 30 days, as three estimates have gone higher while one has gone lower.
For the full year, the earnings estimate of $2.00 per share represents a change of +68.07% from the year-ago number.
The revisions trend for the current year also appears quite promising for Cabot, with four estimates moving higher over the past month compared to one negative revision. The consensus estimate has also received a boost over this time frame, increasing 8.98%.
Thanks to promising estimate revisions, Cabot currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
While strong estimate revisions for Cabot have attracted decent investments and pushed the stock 7.7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.