Earnings Estimates Moving Higher for Noble Corporation PLC (NE): Time to Buy?

Noble Corporation PLC (NE) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The upward trend in estimate revisions for this 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. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Noble Corporation PLC, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $0.17 per share for the current quarter, which represents a year-over-year change of -34.6%.

Over the last 30 days, the Zacks Consensus Estimate for Noble Corporation PLC has increased 25.93% because one estimate has moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $1.16 per share represents a change of +73.1% from the year-ago number.

The revisions trend for the current year also appears quite promising for Noble Corporation PLC, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 11.59%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Noble Corporation PLC currently carries a Zacks Rank #2 (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.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Noble Corporation PLC have attracted decent investments and pushed the stock 33.7% 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.