Track market-moving stories before they get noisy

IMO's 49% year to date rally is backed by strong cash flow and Kearl growth plans, but costs, commodity swings and refinery cuts temper upside.

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It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

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To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Stock to Watch: Imperial Oil (IMO - Free Report) Founded in 1880, Calgary-based Imperial Oil Limited is one of the largest integrated oil companies of Canada, mainly engaged in the oil and gas production, petroleum products refining and marketing and chemical business. It is Canada’s largest jet fuel supplier and a major producer of asphalt. Notably, Imperial Oil is the subsidiary of one the world’s largest publicly traded oil and gas company Exxon Mobil Corporation which holds 69.6% ownership stake.

IMO is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. IMO has a Momentum Style Score of A, and shares are up 8.9% over the past four weeks.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.78 to $11.19 per share. IMO also boasts an average earnings surprise of +1.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, IMO should be on investors' short list.

Key Takeaways Imperial Oil beat Q2 earnings estimates as higher price realizations boosted profit and revenues rose YoY.IMO lowered 2026 refinery throughput and utilization guidance after downtime and a temporary rail issue.Imperial Oil increased operating cash flow YoY and returned C$421 million via dividends. Imperial Oil Limited (IMO - Free Report) reported second-quarter 2026 adjusted earnings per share of $3.27, which beat the Zacks Consensus Estimate of $2.99 and increased from the year-ago quarter’s $1.34, driven by higher price realizations.

Revenues of $11.6 billion missed the Zacks Consensus Estimate of $11.8 billion. However, the top line increased significantly from the year-ago quarter’s level of $8.1 billion, backed by strong performance in both the Upstream and Downstream segments.

During the quarter, Imperial Oil returned C$421 million to its shareholders through dividend payments.

On July 31, 2026, the Calgary-based integrated oil and gas company declared a quarterly dividend of 87 Canadian cents per share on its outstanding common shares, payable on Oct. 1 to its shareholders of record as of Sept. 4.

IMO’s Q2 Segmental InformationUpstream: Revenues of C$5.5 billion increased from the prior-year level of C$3.8 billion. The segment reported a net income of C$1.3 billion compared with C$664 million in the year-ago quarter.

The company recorded average upstream production of 414,000 gross oil-equivalent barrels per day (boe/d) in the second quarter, which decreased from the prior-year level of 427,000 boe/d. Moreover, the figure missed our expectation of 416,000 boe/d.

IMO recorded total gross bitumen production at Kearl averaged 257,000 barrels per day (182,000 barrels Imperial Oil's share), down from 275,000 barrels per day (195,000 barrels Imperial Oil's share) in the second quarter of 2025.

The company also posted gross bitumen production at Cold Lake, averaging 149,000 barrels per day (bpd), which was an increase from 145,000 bpd in the second quarter of 2025.

IMO’s share of gross production from Syncrude averaged 73,000 bpd, down from 77,000 bpd in the second quarter of 2025. Lower volumes at Syncrude were caused by extreme rainfall.

Bitumen price realizations totaled C$95.79 per barrel compared with C$65.82 in the year-ago period. IMO received an average realized price of C$141.10 per barrel for synthetic oil compared with the prior-year quarter’s C$87.85. For conventional crude oil, it received C$85.52 per barrel compared with C$39.31 in the corresponding period of 2025.

Downstream: Revenues of C$17.8 billion increased from the prior-year level of C$12.4 billion. Net income totaled C$787 million compared with C$322 million in the year-ago period.

The company recorded petroleum product sales of 446,000 bpd, compared to 480,000 bpd in the second quarter of 2025. The figure beat our expectation of 410,000 bpd. The refinery throughput in the second quarter averaged 331,000 bpd, down from the prior-year quarter’s level of 376,000 bpd. Moreover, the figure missed our estimate of 357,000 bpd. Imperial Oil recorded lower refinery throughput, primarily due to planned turnaround impacts. The capacity utilization of 76% was down from the year-ago level of 87%. The figure also missed our estimate.

Chemical: Revenues of C$447 million increased from C$356 million in the second quarter of 2025. Net income totaled C$65 million compared with C$21 million in the year-ago period.

IMO’s Total Costs & CapexTotal expenses of C$13.2 billion increased from the year-ago quarter’s C$10 billion.

In the quarter under review, this Zacks Rank #3 (Hold) company’s capital and exploration expenditures totaled C$531 million, up from the year-ago quarter’s C$473 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Financial Performance for IMOCash flow from operating activities was C$2.7 billion compared with C$1.5 billion in the year-ago quarter.

As of June 30, 2026, Imperial Oil had cash and cash equivalents of C$2.8 billion. Total debt of the company amounted to C$3.96 billion, with a debt-to-capitalization of 13.9%.

IMO’s Outlook for 2026Imperial Oil lowered its 2026 refinery guidance, reducing expected throughput from 395,000-405,000 barrels per day to 370,000-380,000 barrels per day and refinery utilization from 91%-93% to 85%-88%. The revised outlook reflects the impact of unplanned downtime and a temporary rail logistics issue at the Strathcona refinery, which the company expects to resolve by the end of the year.

Important Earnings at a GlanceWhile we have discussed IMO’s second-quarter results in detail, let us take a look at three other key reports in this space.

Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation (RRC - Free Report) reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.

The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter.

Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.

As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.

Patterson-UTI Energy (PTEN - Free Report) reported second-quarter 2026 adjusted earnings of break-even, outperforming the Zacks Consensus Estimate of a loss of 3 cents per share. The bottom line improved from the year-ago quarter's adjusted loss of 6 cents, primarily driven by stronger performance in its Completion Services segment and year-over-year improvement in the Drilling Products and Other operations.

This Houston, TX-based oil and gas drilling company’s total revenues of $1.23 billion beat the Zacks Consensus Estimate of $1.15 billion by 7%. The top line also increased about 0.7% year over year, driven by improved activity and pricing in the Completion Services segment, along with higher revenues from Drilling Products and Other operations.

As of June 30, 2026, PTEN had cash and cash equivalents of $203.2 million and long-term debt of $1.23 billion. Its debt-to-capitalization was 28.5%.

Imperial Oil (IMO - Free Report) came out with quarterly earnings of $3.27 per share, beating the Zacks Consensus Estimate of $2.99 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.37%. A quarter ago, it was expected that this oil and gas and petroleum products company would post earnings of $1.67 per share when it actually produced earnings of $1.41, delivering a surprise of -15.57%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Imperial Oil, which belongs to the Zacks Oil and Gas - Integrated - Canadian industry, posted revenues of $11.6 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.18%. This compares to year-ago revenues of $8.12 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Imperial Oil shares have added about 49.2% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Imperial Oil?While Imperial Oil has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Imperial Oil was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.96 on $13.21 billion in revenues for the coming quarter and $9.60 on $42.04 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - Canadian is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Suncor Energy (SU - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.

This energy company is expected to post quarterly earnings of $2.14 per share in its upcoming report, which represents a year-over-year change of +319.6%. The consensus EPS estimate for the quarter has been revised 2.3% lower over the last 30 days to the current level.

Suncor Energy's revenues are expected to be $10.35 billion, up 20.4% from the year-ago quarter.

CALGARY, Alberta--(BUSINESS WIRE)--Imperial (TSE: IMO) (NYSE American: IMO):   Second quarter Six months millions of Canadian dollars, unless noted   2026   2025   ∆   2026   2025   ∆ Net income (loss) (U.S. GAAP) 2,190 949 +1,241 3,130 2,237 +893 Net income (loss) per common share, assuming dilution (dollars) 4.52 1.86 +2.66 6.46 4.38 +2.08 Capital and exploration expenditures 531 473 +58 1,009 871 +138 Imperial reported estimated net income in the second quarter of $2,190 million, up from net.

Wall Street expects a year-over-year increase in earnings on higher revenues when Imperial Oil (IMO - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis oil and gas and petroleum products company is expected to post quarterly earnings of $2.99 per share in its upcoming report, which represents a year-over-year change of +123.1%.

Revenues are expected to be $11.86 billion, up 46.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 12.83% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Imperial Oil?For Imperial Oil, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Imperial Oil will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Imperial Oil would post earnings of $1.67 per share when it actually produced earnings of $1.41, delivering a surprise of -15.57%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Imperial Oil doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Oil and Gas - Integrated - Canadian industry, Cenovus Energy (CVE - Free Report) , is soon expected to post earnings of $1.11 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +236.4%. This quarter's revenue is expected to be $9.57 billion, up 7.4% from the year-ago quarter.

The consensus EPS estimate for Cenovus has been revised 29.3% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Cenovus will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

CALGARY, Alberta--(BUSINESS WIRE)--(TSE: IMO, NYSE American: IMO) John Whelan, chairman, president and chief executive officer, and Peter Shaw, vice-president, investor relations, Imperial Oil Limited, will host a 2026 Second Quarter Earnings Call on Friday, July 31, following the company’s second quarter earnings release that morning. The event begins at 9 a.m. MT and will be accessible by webcast.

During the call, Mr. Whelan will offer brief remarks prior to taking questions from Imperial’s covering analysts.

Please click here [https://event.webcasts.com/starthere.jsp?ei=1767976&tp_key=26edba80d4] to register for the live webcast. The webcast will be available for one year on the company’s website at https://www.imperialoil.ca/en-CA/Investors/Investor-relations.

In the event that the EDGAR system experiences technical difficulties, or the company is unable to successfully complete its Form 8-K earnings press release filing at the intended time, investors and the public should look for this information at that time on Imperial’s website or on Canada’s SEDAR+ system at www.sedarplus.ca. In case of a failed filing, the company intends to furnish the information on EDGAR as soon as possible.

Source: Imperial

After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada’s energy resources. As Canada’s largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.

Key Takeaways WTI fell 31% in Q2, making energy-linked stocks more attractive while risks remain.GLP's 2026 earnings estimate implies 113.1% growth and rose 47.7% over the past 60 days.NESR and IMO offer exposure through oilfield services, production, refining and fuel retailing. WTI crude oil prices fell 31% during the second quarter, changing sentiment across the energy market. While such a sharp decline may make oil look more attractively priced, it does not necessarily mean that the risks have disappeared.

For investors considering the recent pullback as a buying opportunity, energy-related stocks, such as Global Partners LP (GLP - Free Report) , National Energy Services Reunited (NESR - Free Report) and Imperial Oil (IMO - Free Report) could be attractive investment candidates. The opportunity is not based on the expectation of an immediate rebound in oil prices. Instead, the sharp decline has lowered expectations across the energy sector, potentially creating attractive entry points for fundamentally strong companies.

Oil Looks Cheaper but Not Necessarily Safer

U.S. benchmark WTI crude settled at $69.50 a barrel on June 30, after falling 20% in June and 31% for the quarter. That marked the largest quarterly decline since the first quarter of 2020.

The move brought prices back near levels seen before the Iran conflict. For many investors, this raises a natural question: has the market overreacted, or is it simply adjusting to a less severe supply picture?

A sharp drawdown can create better entry prices, but it can also signal that traders no longer see the same shortage risk. In plain terms, cheaper oil is not the same as low-risk oil.

Why WTI Fell So Quickly

WTI crude prices declined as concerns over supply disruptions in the Persian Gulf eased faster than many had expected. A prolonged U.S.-Iran cease-fire in June reduced fears that oil shipments through the region would face major disruptions.

Several other developments also helped stabilize the market. China reduced its crude oil imports, countries released oil from emergency reserves, and more tankers resumed passing through the Strait of Hormuz. At the same time, producers and buyers found alternative ways to keep oil flowing to major markets.

As supply concerns eased, the extra risk premium built into oil prices began to disappear. Once it became clear that global oil supplies remained largely intact, WTI gave up much of the price gains that had been driven by geopolitical tensions.

What Could Support the Commodity Going Forward

One possible support for oil prices is the rebuilding of emergency crude oil reserves. If countries begin replenishing the stockpiles they used during recent supply disruptions, demand for physical oil could increase.

Another factor to watch is geopolitical risk. Any fresh tensions in the Middle East could push oil prices higher again, particularly if markets become concerned about disruptions to oil production or shipping routes.

These factors do not guarantee that oil prices will rise. However, they could help support the market after the sharp decline in the second quarter. Investors should view them as potential positives while remaining prepared for continued price volatility.

What Could Keep WTI Under Pressure

The biggest risk for oil prices is a continued increase in supply. If oil production in the Middle East keeps recovering and other major producers continue raising output, it could limit any meaningful rise in crude prices.

Iran is another important factor. If sanctions are eased and the country is able to increase oil production significantly, additional supply could enter the market at a time when demand has already weakened in some regions.

For investors, the takeaway is simple. Oil prices are lower than they were a few months ago, but a sustained recovery will likely require stronger demand, renewed stockpile rebuilding or fresh geopolitical tensions that tighten global supplies.

How Investors Can Approach the Current Oil Market

The sharp drop in oil prices has made the energy sector more interesting but investors should remain selective. Rather than betting directly on a recovery in crude oil prices, some investors may prefer companies whose businesses are linked to the energy market.

This is where Global Partners LP, National Energy Services Reunited and Imperial Oil deserve attention. These companies — each carrying the coveted Zacks Rank #1 (Strong Buy) — offer different ways to gain exposure to the energy sector, allowing investors to focus on each company's fundamentals instead of relying solely on higher oil prices.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3 Stocks to Buy

Global Partners LP: It is a leading U.S. fuel distributor and retailer, operating about 1,600 fueling locations, 290 company-run convenience stores and 54 liquid energy terminals with roughly 22.3 million barrels of storage capacity. Global Partners’ integrated business covers fuel sourcing, storage, distribution and retail operations across the Northeast, Mid-Atlantic and Gulf Coast. Because of its extensive fuel distribution and storage network, GLP is closely tied to energy prices, with higher fuel prices and market volatility often creating opportunities to benefit from favorable market conditions.

The Zacks Consensus Estimate for 2026 earnings of Global Partners indicates 113.1% growth. Over the past 60 days, the Zacks Consensus Estimate for GLP’s 2026 earnings has moved up 47.7%.

National Energy Services Reunited: It is a Houston-based oilfield services company focused mainly on the Middle East and North Africa. NESR supports drilling, production, stimulation and evaluation work, often through long-term partnerships with national oil companies. This gives National Energy Services steadier demand than short-cycle shale markets. Its cementing contracts and regional project pipeline show solid growth visibility, though geopolitical risks remain. Because its business depends on drilling and production activity, National Energy Services generally benefits when higher oil prices encourage energy companies to invest more in developing oil and gas fields.

NESR beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16%, on average. The Zacks Consensus Estimate for 2026 earnings of National Energy Services indicates 104.9% growth.

Imperial Oil: It is a Canadian energy company with operations in oil production, refining, chemicals and fuel retailing. In 2025, Imperial Oil generated $3.3 billion in net income and $6.7 billion in cash from operations, supported by solid production and high refinery use. Its Kearl and Cold Lake assets are key output drivers. IMO’s earnings can move with energy prices because oil prices, fuel demand and refining margins influence its cash flow.

The Zacks Consensus Estimate for 2026 earnings of Imperial Oil indicates 69.2% growth. Over the past 60 days, the Zacks Consensus Estimate for IMO’s 2026 earnings has moved up nearly 4%.

Investors might want to bet on Imperial Oil (IMO - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Imperial Oil is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Imperial Oil, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Imperial OilThis oil and gas and petroleum products company is expected to earn $10.32 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Imperial Oil. Over the past three months, the Zacks Consensus Estimate for the company has increased 59.4%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Imperial Oil to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

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An ethanol plant with its giant corn silos next to a cornfield in Windsor, Colorado July 7, 2006./File Photo Purchase Licensing Rights, opens new tab

CompaniesSAO PAULO, June 15 (Reuters) - The International Maritime Organization's decision defining Brazilian corn ethanol's carbon footprint is a landmark step that could position maritime transport as ​a major future market for the sector, industry executives told Reuters.

In ‌May, the IMO defined the default value of Brazilian corn ethanol's carbon footprint at 20.8 grams of carbon dioxide-equivalent (CO2e) per megajoule, specifically referring to biofuel produced from the country's intermediate or ​second-corn crop.

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The current average greenhouse gas fuel intensity in shipping is 93.3 ​grams of CO2e per megajoule, according to the IMO.

The IMO's defined ⁠value for Brazilian corn ethanol is a significant step as the agency ​builds regulations to govern lower-carbon fuels, said Gustavo Mariano, vice president of trading at ​Inpasa.

"It was a historic and symbolic milestone," Mariano said in an interview, adding that it consolidates the position of Brazilian and South American corn ethanol as a viable fuel for decarbonization.

For ​decades, Brazil's ethanol industry has been dominated by the country's sugarcane producers. However, ​according to industry association UNEM, corn ethanol output surged to almost 10 billion liters in the ‌2025/26 ⁠season, up from 2.65 billion liters at the start of the decade.

Once biofuels receive approval for use in shipping, producers could benefit from possible premiums on greener fuels, said Rafael Abud, chief executive of corn ethanol maker FS Fueling Sustainability.

"We have ​invested heavily in ​every aspect we ⁠can to decarbonize our product," Abud said, citing efforts to lower emissions from biomass use, industrial efficiency and a bioenergy ​with carbon capture and storage project that could eventually make FS ​ethanol ⁠carbon negative.

The scale of the global shipping industry means Brazil's second-crop corn ethanol will not be in competition with other biofuels such as sugarcane ethanol and biodiesel, but will complement ⁠them ​instead, the executives said.

"If the global bunker market ​were converted into ethanol equivalent, it would be almost 400 billion liters," Mariano said. "These are volumes so ​large that we need all sustainable biofuels."

Reporting by Oliver Griffin; Editing by Will Dunham

Our Standards: The Thomson Reuters Trust Principles., opens new tab

After five years with Reuters in Colombia and the Andes, Oliver is now based in Brazil's São Paulo. He covers soft commodities including sugar, coffee, cocoa - among others - as well as some biofuels.

Wall Street expects a year-over-year decline in earnings on higher revenues when Imperial Oil (IMO - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on May 1, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis oil and gas and petroleum products company is expected to post quarterly earnings of $1.67 per share in its upcoming report, which represents a year-over-year change of -4.6%.

Revenues are expected to be $9.79 billion, up 12.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 157.6% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Imperial Oil?For Imperial Oil, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination makes it difficult to conclusively predict that Imperial Oil will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Imperial Oil would post earnings of $1.36 per share when it actually produced earnings of $1.41, delivering a surprise of +3.68%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Imperial Oil doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Wall Street expects a year-over-year increase in earnings on higher revenues when Suncor Energy (SU - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis energy company is expected to post quarterly earnings of $1.45 per share in its upcoming report, which represents a year-over-year change of +59.3%.

Revenues are expected to be $8.94 billion, up 3.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 31.15% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Suncor Energy?For Suncor Energy, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination makes it difficult to conclusively predict that Suncor Energy will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Suncor Energy would post earnings of $0.77 per share when it actually produced earnings of $0.79, delivering a surprise of +2.60%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Suncor Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Oil and Gas - Integrated - Canadian industry, Imperial Oil (IMO - Free Report) , is soon expected to post earnings of $1.67 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -4.6%. Revenues for the quarter are expected to be $9.79 billion, up 12.3% from the year-ago quarter.

The consensus EPS estimate for Imperial Oil has been revised 70.9% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP makes it difficult to conclusively predict that Imperial Oil will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

CALGARY, Alberta--(BUSINESS WIRE)--Imperial (TSE: IMO) (NYSE American: IMO):   First quarter millions of Canadian dollars, unless noted 2026 2025 ∆I Net income (loss) (U.S. GAAP) 940 1,288 (348) Net income (loss) per common share, assuming dilution (dollars) 1.94 2.52 (0.58) Capital and exploration expenditures 478 398 +80 Imperial reported estimated net income in the first quarter of $940 million, up from net income of $492 million in the fourth quarter of 2025, primarily driven by the absence.

Imperial Oil (IMO - Free Report) came out with quarterly earnings of $1.41 per share, missing the Zacks Consensus Estimate of $1.67 per share. This compares to earnings of $1.75 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -15.57%. A quarter ago, it was expected that this oil and gas and petroleum products company would post earnings of $1.36 per share when it actually produced earnings of $1.41, delivering a surprise of +3.68%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Imperial Oil, which belongs to the Zacks Oil and Gas - Integrated - Canadian industry, posted revenues of $9.07 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 7.31%. This compares to year-ago revenues of $8.72 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Imperial Oil shares have added about 55.3% since the beginning of the year versus the S&P 500's gain of 5.3%.

What's Next for Imperial Oil?While Imperial Oil has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Imperial Oil was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.83 on $10.82 billion in revenues for the coming quarter and $8.45 on $38 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - Canadian is currently in the top 2% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Suncor Energy (SU - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.

This energy company is expected to post quarterly earnings of $1.45 per share in its upcoming report, which represents a year-over-year change of +59.3%. The consensus EPS estimate for the quarter has been revised 31.2% higher over the last 30 days to the current level.

Suncor Energy's revenues are expected to be $8.94 billion, up 3.1% from the year-ago quarter.

Key Takeaways IMO posted Q1 EPS of $1.41, missing estimates and falling YoY, while sales rose to $9.1B but missed consensus.IMO saw weaker upstream income and lower prices, with declines in downstream sales and refinery throughput.IMO returned C$350M via dividends and expects 2026 upstream output of 441K-460K boe/d with steady utilization. Imperial Oil Limited (IMO - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.41, which missed the Zacks Consensus Estimate of $1.67 and decreased from the year-ago quarter’s $1.75 due to lower net income in the upstream segment and a lower average realized price for synthetic crude.

Revenues of $9.1 billion missed the Zacks Consensus Estimate of $9.8 billion due to weak performance in both the Upstream and Downstream segments. However, the top line increased from the year-ago quarter’s level of $8.7 billion.

During the quarter, Imperial Oil returned C$350 million to its shareholders through dividend payments.

On May 1, 2026, the Calgary-based integrated oil and gas company declared a quarterly dividend of 87 Canadian cents per share on its outstanding common shares, payable on July 1, 2026, to its shareholders of record as of June 4.

IMO’s Segmental InformationUpstream: Revenues of C$4 billion decreased from the prior-year level of C$4.5 billion. The segment reported a net income of C$470 million compared with C$731 million in the year-ago quarter.

The company recorded average upstream production of 419,000 gross oil-equivalent barrels per day (boe/d) in the first quarter, which increased from the prior-year level of 418,000 boe/d. However, the figure missed our expectation of 436,000 boe/d.

IMO recorded total gross bitumen production at Kearl averaged 259,000 barrels per day (183,000 barrels Imperial Oil's share), up from 256,000 barrels per day (181,000 barrels Imperial Oil's share) in the first quarter of 2025.

The company also posted gross bitumen production at Cold Lake, averaging 155,000 barrels per day (bpd), which was an increase from 154,000 bpd in the first quarter of 2025.

IMO’s share of gross production from Syncrude averaged 72,000 bpd, down from 73,000 bpd in the first quarter of 2025. Lower volumes at Syncrude were caused by unplanned coker downtime.

Bitumen price realizations totaled C$68.21 per barrel compared with C$75.31 in the year-ago period. IMO received an average realized price of C$96.13 per barrel for synthetic oil compared with the prior-year quarter’s C$98.79. For conventional crude oil, it received C$52.44 per barrel compared with C$48.70 in the corresponding period of 2025.

Downstream: Revenues of C$13.9 billion decreased from the prior-year level of C$14 billion. Net income totaled C$611 million compared with C$584 million in the year-ago period.

The company recorded petroleum product sales of 441,000 bpd, compared to 455,000 bpd in the first quarter of 2025. The figure missed our expectation of 494,000 bpd. The refinery throughput in the first quarter averaged 384,000 bpd, down from the prior-year quarter’s level of 397,000 bpd. Moreover, the figure missed our estimate of 412,000 bpd. Imperial Oil recorded lower refinery throughput, primarily due to unplanned downtime and a disruption of synthetic crude feedstock caused by Syncrude's coker outage. The capacity utilization of 88% was down from the year-ago level of 91%. The figure also missed our estimate.

Chemical: Revenues of C$336 million decreased from C$372 million in the first quarter of 2025. Net income totaled C$24 million compared with C$31 million in the year-ago period.

IMO’s Total Costs & CapexTotal expenses of C$11.2 billion increased from the year-ago quarter’s C$10.8 billion.

In the quarter under review, this Zacks Rank #1 (Strong Buy) company’s capital and exploration expenditures totaled C$478 million, up from the year-ago quarter’s C$398 million.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Financial Performance for IMOCash flow from operating activities was C$756 million compared with C$1.5 billion in the year-ago quarter.

As of March 31, 2026, Imperial Oil had cash and cash equivalents of C$1 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.9%.

IMO’s Outlook for 2026IMO has already disclosed a capital and exploration spending budget ranging between C$2 billion and C$2.2 billion for 2026. Within its Upstream segment, production is anticipated to be in the range of 441,000-460,000 gross oil-equivalent barrels per day for the same year. Meanwhile, throughput in the Downstream segment is projected to be in the range of 395,000-405,000 barrels per day, accompanied by a capacity utilization rate of 91-93% throughout 2026.

Important Earnings at a GlanceWhile we have discussed IMO’s first-quarter results in detail, let us take a look at three other key reports in this space.

Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. However, the bottom line decreased from the year-ago quarter's breakeven result due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments.

Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%. This was driven by higher-than-expected revenues from the Drilling Services and Completion Services segments. The Drilling Services and Completion Services segments reported revenues of $351.7 million and $679.6 million, which beat the consensus mark of $350 million and $37.1 million, respectively. However, the top line decreased about 12.8% year over year. This underperformance can be attributed to the decrease in year-over-year segment revenues.

As of March 31, 2026, the company had cash and cash equivalents worth $337.2 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.8%.

NOV Inc. (NOV - Free Report) reported first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents. The bottom line also decreased 21% from the year-ago quarter’s 19 cents.

The oil and gas equipment and services company’s total revenues of $2.05 billion beat the Zacks Consensus Estimate by $2 million but fell 2.4% from the year-ago quarter’s figure of $2.1 billion.

The lower-than-expected quarterly earnings of the company were primarily attributable to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs.

As of March 31, the company had cash and cash equivalents of $1.3 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.2%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.

Nabors Industries Ltd. (NBR - Free Report) reported a first-quarter 2026 adjusted loss of $1.54 per share, narrower than the Zacks Consensus Estimate of a loss of $2.39. Additionally, the metric is significantly above the prior-year quarter’s reported loss of $7.5 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling segment.

The oil and gas drilling company’s operating revenues of $783.5 million beat the Zacks Consensus Estimate of $779 million. The top line also increased from the year-ago quarter’s $736.2 million, primarily supported by higher contributions from the U.S. Drilling, International Drilling and Drilling Solutions segments.

As of March 31, 2026, Nabors had $500.9 million in cash and short-term investments. Long-term debt was about $2.1 billion, with a debt-to-capitalization of 78.8%.

Listen to the audio version of this article (generated by AI).

The AI trade shifts to CPUs… Luke Lango with a batch of AI stocks to consider… Jonathan Rose eyes a Canadian oil squeeze … Louis Navellier is positioning for the Warsh Era If you acted on our March 19 Digest and jumped into Intel (INTC), congrats – you’re up about 150%, a move that’s nearly 14X’d the S&P over the same period.

What’s behind this surge?

A mix of rising AI-infrastructure demand, renewed enthusiasm around Intel’s foundry ambitions, and growing demand for server CPUs.

Zeroing in on that “server CPU” element, It’s not just Intel…

As we covered in yesterday’s Digest, Advanced Micro Devices Inc. (AMD) – another huge CPU maker – jumped nearly 19% on Wednesday after strong earnings highlighted surging demand for AI data-center hardware – including server CPUs.

AMD forecast that server CPU revenue will grow by more than 70% year-over-year in the upcoming second quarter.

And CEO Lisa Su doubled the company’s long-term forecast for the server CPU market, now expecting it to reach $120 billion by 2030 (up from a previous estimate of $60 billion).

Now, before we go any further, let’s fill in some details…

What’s a CPU, and why should we care? Until recently, the AI boom has been defined by one thing…

Graphics processing units, or GPUs.

These specialized chips handle massive workloads all at once – powering everything from ChatGPT to enterprise AI systems – and they’ve been at the center of the AI explosion.

But as AI shifts from standalone chatbots to coordinated AI agents (the next phase of AI that’s racing toward us), the demands inside data centers are beginning to change.

Here’s our macro investing expert Eric Fry of Fry’s Investment Report connecting that shift:

Technology companies are now building agentic AI systems – networks of AI agents that collaborate to complete complex tasks.

Instead of answering one question, they manage entire workflows.

That shift dramatically changes the computing demands inside data centers.

Given this shift, a much older, far less flashy piece of technology suddenly becomes critical again…

You guessed it – the central processing unit, or CPU.

Of course, modern AI systems also rely on advanced networking, memory, and orchestration software. But CPUs remain central to directing workloads and keeping these increasingly complex systems operating efficiently.

If GPUs are the engines doing the heavy lifting, CPUs are increasingly becoming the conductors They direct traffic, coordinate tasks, and keep everything operating efficiently.

Back to Eric:

The GPUs run the AI models…

But the CPUs increasingly run the system that manages the AI.

So, the next phase of the AI boom may not be driven solely by bigger models, but by the infrastructure required to coordinate them.

Translation: growing demand for server CPUs.

Back to Eric:

The semiconductor industry is already seeing early signs of tightening supply for server CPUs.

Delivery times for some processors have stretched toward six months. Prices have risen more than 10% in certain markets.

That was the core analysis that led us to put Intel on your radar back in March. And here we are, 150% later.

We expect outsized demand for CPUs to continue driving INTC and AMD higher over the next 12 months.

But the opportunity here extends far beyond CPU leaders We also expect huge growth to come from:

high-bandwidth memory networking chips data-center interconnects power infrastructure AI server manufacturers Given this opportunity set, let’s put some new ideas on your radar today, courtesy of our technology expert Luke Lango of Innovation Investor.

On Tuesday, Luke covered the hyperscalers’ $700 billion spending commitments in 2026 to build out AI infrastructure, then asked the question…

Who benefits?

Here he is with some of the stocks he flagged:

Nvidia (NVDA) remains the primary beneficiary of AI compute spending, supplying GPUs to all four hyperscalers.  Marvell Technology (MRVL) is building custom chips for Amazon and Microsoft.  Applied Materials (AMAT), KLA Corporation (KLAC), and Lam Research (LRCX) supply the equipment used to manufacture every chip going into these data centers.  Monolithic Power Systems (MPWR) provides power management semiconductors critical to the efficiency of AI compute.  This list is hardly exhaustive. And while Luke is bullish on these companies, they’re not necessarily his favorite AI picks right now. To access his official AI recommendation list in Innovation Investor, click here to learn about joining him.

Here’s Luke’s overall message to investors today:

The AI trade is not a momentum trade built on narrative. It is a fundamental trade anchored in the largest capital investment cycle in the history of technology, validated by real revenue, real margins, and real customer commitments. 

And the companies on the receiving end of that spending remain the most compelling investment opportunity in the market.

Shifting gears to the oil patch… Over the last two days, Brent crude has tumbled from around $108 to $101 (as I write) while West Texas Intermediate has pulled back from about $101 to $96.

As we covered in the Digest, the trigger was an Axios report that the U.S. and Iran are nearing a 14-point memorandum of understanding to end the war that has strangled roughly a fifth of global oil and gas supplies. As I write on Thursday, we’re still waiting for Iran’s response to the latest proposal from the U.S.

For most investors, this pullback in oil is just a headline. For veteran trader Jonathan Rose of Masters in Trading, it was the latest chapter in a story he’s been tracking since February.

When the conflict in the Strait of Hormuz was beginning, Jonathan was already highlighting where volatility-based opportunities would arise.

He flagged refiners, domestic producers, and commodity names before the crowd caught on – and his subscribers locked in a string of big wins as the conflict escalated.

Now, with oil pulling back sharply on peace hopes, Jonathan is looking at a completely different angle – one most traders aren’t even aware of…

While everyone watches the Middle East, he’s eyeing Canadian oil sands Here’s Jonathan to explain:

Bitumen – that thick, sludgy oil used in Canadian oil sands – is ripping higher.

To make sure we’re all on the same page, while bitumen prices have some sensitivity to Strait of Hormuz volatility, they’re primarily driven by Chinese infrastructure demand.

Oil sands producers, characterized by low marginal costs and high fixed capital, see explosive cash flow growth – and often, related stock moves – when these margins expand.

And recently, margins have been widening due to a “perfect storm” of rising prices and falling transportation costs.

For example, in March, Western Canada Select (WCS) prices averaged $75.85/barrel, nearly 40% higher than a year prior. Meanwhile, the “discount” Canadian producers pay to ship their oil has shrunk significantly. The Trans Mountain Expansion (TMX) has allowed producers to reach Asian markets directly, boosting industry revenue by billions.

Which brings us back to Jonathan’s characterization of bitumen prices “ripping” higher.

Priced in Chinese yuan (because China is the world’s largest consumer), bitumen has jumped nearly 50% since January.

Back to Jonathan:

That’s a massive move.

There’s a squeeze happening in a market most traders don’t follow.

So, how do you play it? Jonathan has built a basket of five names with direct exposure: Suncor (SU), Cenovus (CVE), Canadian Natural Resources (CNQ), Imperial Oil (IMO) and Strathcona (STHRF).

In Tuesday’s free Masters in Trading LIVE episode, he highlighted all five, but then zeroed in on his favorite: CNQ – low implied volatility, clean options structure, and room to run toward $60.

Rather than simply buying the stock outright, Jonathan is using options to structure a defined-risk bullish position in CNQ.

The appeal of this approach is straightforward – a relatively small upfront investment can yield significant upside if Canadian oil producers continue to rally.

In the example Jonathan walked through, roughly $150 of risk could turn into $800 or more if CNQ hits his target price.

Meanwhile, risk is capped at the initial premium Jonathan pays upfront – an approach Jonathan often favors when volatility creates asymmetric opportunities.

This is exactly how Jonathan operates… While the crowd chases the trade that’s playing out in the wake of the headline, Jonathan is positioning himself in the next setup that will become tomorrow’s headline.

If you’d like to understand how he finds opportunities like this ahead of time, his Masters in Trading Challenge walks you through that exact process over seven days, using real setups in real time.

Here’s Jonathan:

You’ll see how we identify catalysts, interpret the signals that matter, and translate those into real trades – all while managing risk in real time.

You’ve got nothing to prove. You’ve just got to be willing to learn.

You can get more details right here.

We’ll keep you updated on all these stories and trades here in the Digest.

Before we wrap up… legendary investor Louis Navellier has a message for you The Fed conversation we’ve been tracking in the Digest – rates stuck, inflation sticky, June 2027 the new baseline – has a flip side that’s caught Louis’ radar…

He believes that we’re still early in a major cycle shift – not because rate cuts are coming tomorrow, but because the broader transition to a new Fed regime is already underway. And historically, such transitions have been the setup for some of the biggest stock market winners in decades.

It happened in 1995, 2001, 2008, and 2020. Louis believes it’s happening again – which is why he’s already looking at the right portfolio positioning.

Louis just created a list of 53 under-the-radar stocks that his Stock Grader system is flagging. They have the same early signals he’s used to find some of the biggest winners of his four-decade career.

I’ll bring you more details on this over the coming days, but just a heads-up: he’s going live next Tuesday, May 13 at 1 p.m. Eastern to walk through all of it. He’ll also share one of his favorite stocks for this market shift during the broadcast.

More details to come, but to reserve your spot here today for this free event, just click here.

Have a good evening,

Jeff Remsburg

(Disclosure: I own AMD.)

Key Takeaways ADM is gaining from Nutrition growth, BioSolutions expansion and stronger digital capabilities.CASY and ROST are seeing sales growth from pricing, merchandising and store expansion efforts.NUE and IMO are benefiting from higher demand, expansion projects and improving profitability. Wall Street has been witnessing an astonishing rally since the beginning of 2023, barring some minor fluctuations. The prolonged rally has been primarily driven by the global artificial intelligence (AI) technology boom. Generative and agentic AI have transformed the entire landscape of the information technology sector worldwide.

A handful of non-AI stocks have also jumped year to date. Investment in these stocks with a favorable Zacks Rank should be fruitful in 2026. Five such non-AI stocks are: Archer-Daniels-Midland Co. (ADM - Free Report) , Casey's General Stores Inc. (CASY - Free Report) , Nucor Corp. (NUE - Free Report) , Ross Stores Inc. (ROST - Free Report) and Imperial Oil Ltd. (IMO - Free Report) . 

Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Archer-Daniels-Midland Co.Zacks Rank #2 Archer-Daniels-Midland is benefiting from a rebound in its Nutrition segment. Human Nutrition is gaining traction, with the Flavors portfolio benefiting from solid North American demand, international customer wins and improved margins from a favorable mix and disciplined pricing. 

ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and strengthen customer reach.

ADM is actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. The company is well-positioned for sustainable long-term profit growth across new avenues. 

ADM has been creating additional margin opportunities, opening up channels to customers, advancing digital technologies in areas like farmer needs, the extension of Regen Act programs and partnerships, and the growth of its BioSolutions platform. 

Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.5% and 32.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.3% over the last 30 days.

Casey's General Stores Inc.Zacks Rank #2 Casey's General Stores shows strong growth momentum, supported by resilient inside sales, driven by prepared foods, beverages and high-margin grocery categories. Effective pricing, product innovation and a favorable product mix continue to enhance CASY’s margins and customer traffic. 

We anticipate the inside gross margin to expand 60 basis points year over year in fiscal 2026. CASY’s fuel segment is outperforming industry trends, strengthening market share and profitability despite price fluctuations. 

The Fikes/CEFCO acquisition is boosting scale, operational efficiency and long-term growth potential, supported by integration synergies. CASY’s strong cash flow generation and stable financial position provide flexibility for investments, expansion, and shareholder returns, reinforcing confidence in its sustained growth trajectory and overall business strength.

Casey's General Stores has an expected revenue and earnings growth rate of 10.8% and 12.4%, respectively, for the current year (ending April 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.5% over the last 30 days. 

Nucor Corp.Zacks Rank #1 Nucor is committed to expanding its production capabilities and growing its business through strategic acquisitions. NUE’s efforts to boost production capacity through several growth projects should drive profitability. Nucor is also seeing strong momentum in non-residential construction. 

NUE remains focused on achieving greater penetration in the automotive market. NUE is committed to maximizing returns to its shareholders by leveraging strong cash flows. Higher steel prices are also expected to support Nucor’s margins. Steel mills' price hikes amid a recovery in demand in key markets and tighter supply have led to an uptick in steel prices.

Nucor has an expected revenue and earnings growth rate of 14% and 92.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last seven days. 

Ross Stores Inc.Zacks Rank #2 Ross Stores has been benefiting from the strong execution of its off-price retail model. ROST continues to benefit from solid demand for value-driven merchandise, delivering 21% sales growth and 17% comps growth in first-quarter fiscal 2026, supported by effective merchandising and marketing initiatives. 

ROST is also progressing well on store-expansion plans, with long-term growth potential across both banners, targeting 2,900 Ross Dress for Less and 700 dd’s DISCOUNTS stores. For fiscal 2026, ROST expects comps growth of 6-7%, with earnings of $7.50-$7.74, up 13-17% year over year. 

Solid financial flexibility, disciplined capital allocation and ongoing share repurchases highlight ROST’s commitment to shareholder returns, underscoring a robust business for continued growth.

Ross Stores has an expected revenue and earnings growth rate of 8.2% and 15.6%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 3.9% over the last seven days. 

Imperial Oil Ltd.Zacks Rank #1 Imperial Oil’s integrated business model, spanning oil sands production, refining, petrochemicals and retail operations, provides stable earnings and lowers exposure to oil-price volatility. Backing from parent Exxon Mobil strengthens IMO’s financial flexibility and access to low-cost capital. 

IMO also maintains a growth pipeline, with expansion plans at Kearl and Cold Lake alongside projects like Mahihkan and Grand Rapids SA-SAGD that can increase production while improving recovery rates and lowering costs. Operating cash flow supports dividends and share repurchases, while IMO’s downstream and renewable diesel operations enhance profitability during periods of strong fuel demand.

Imperial Oil has an expected revenue and earnings growth rate of 28.6% and 70.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.7% over the last seven days. 

Teledyne Gas and Flame Detection (Teledyne GFD), part of Teledyne Technologies Incorporated NYSE:TDY , is responding to updated International Maritime Organization (IMO) recommendations for entering enclosed spaces aboard ships with gas detection solutions that help operators strengthen atmospheric monitoring and address evolving safety expectations.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260601441845/en/

Teledyne Gas and Flame Detection's Maritime Safety Monitoring

IMO Resolution MSC.581(110) broadens recommended gas testing protocols to include carbon dioxide alongside other key atmospheric hazards. Growing demand for these solutions has contributed to multiple related awards year-to-date, reflecting increased focus across the maritime sector on safety readiness and compliance.

“The IMO’s revised recommendations represent an important advancement for maritime safety,” said Thibault Fourlegnie, Vice President and General Manager, Teledyne GFD. “We provide practical gas detection solutions that help customers improve enclosed-space safety and meet evolving compliance expectations.”

Manufactured at Teledyne GFD’s facility in Renfrew, Scotland, the company’s gas detection solutions draw upon more than 75 years of engineering and manufacturing expertise in industrial safety technologies. Investment at the plant is ongoing in line with growing global demand.

About Teledyne Gas and Flame Detection

Teledyne GFD equips ship operators, partners, and stakeholders with technologies that help protect personnel, strengthen compliance, and promote safer working practices across the industry. With marine-approved gas detection solutions manufactured in Renfrew, Scotland, the company helps customers address evolving enclosed-space safety expectations. For more information, visit Teledyne Gas and Flame Detection.

About Teledyne

Teledyne is a leading provider of sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems. Teledyne's operations are primarily located in the United States, Canada, the United Kingdom, and Western and Northern Europe. For more information, visit Teledyne's website at teledyne.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260601441845/en/

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Imperial Oil (IMO - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.

Imperial Oil is a member of our Oils-Energy group, which includes 238 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Imperial Oil is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for IMO's full-year earnings has moved 100.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that IMO has returned about 37.9% since the start of the calendar year. At the same time, Oils-Energy stocks have gained an average of 24.4%. This shows that Imperial Oil is outperforming its peers so far this year.

Another stock in the Oils-Energy sector, Cenovus Energy (CVE - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 63.4%.

For Cenovus Energy, the consensus EPS estimate for the current year has increased 178.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Imperial Oil belongs to the Oil and Gas - Integrated - Canadian industry, a group that includes 4 individual stocks and currently sits at #7 in the Zacks Industry Rank. Stocks in this group have gained about 47.5% so far this year, so IMO is slightly underperforming its industry this group in terms of year-to-date returns. Cenovus Energy is also part of the same industry.

Investors with an interest in Oils-Energy stocks should continue to track Imperial Oil and Cenovus Energy. These stocks will be looking to continue their solid performance.