Back to top

Analyst Blog

We retain our Neutral recommendation on Noble Energy Inc. (NBL - Analyst Report). The oil and gas exploration as well as production operator currently carries a Zacks Rank #3 (Hold).

Why the Reiteration?

Noble Energy maintained its good run and posted favorable earnings results in the first quarter of 2013, widely surpassing our expectation. Production ramp-up in the U.S. onshore assets primarily led to the uptrend.

The Neutral reiteration takes into account the threat of operational disturbances from violent storms. The company has to be extra cautious given the recent prediction by National Oceanic Atmospheric Administration regarding increased hurricane activity in 2013.

Noble Energy’s Tamar field in offshore Israel and its Alen prospect in Equatorial Guinea will nevertheless be the key growth drivers. The company will substantially benefit from rising natural gas demand in Israel. Further, the company’s increased stake in the high-quality Gunflint block in the Gulf of Mexico will complement returns.

However, dependence on third party for marketability of production might act as a headwind. Moreover, commodity price volatility will continue to affect Noble Energy’s business.

All said, growth prospects from the domestic assets look encouraging thanks to the increased production activities in the Marcellus and Denver/Julesburg Basins which will benefit Noble significantly.

Other Stocks to Consider

However, other oil and gas industry players looking good at the moment are Zacks Ranked #2 (Buy) Anadarko Petroleum Corp. (APC - Analyst Report), EOG Resources Inc. (EOG - Analyst Report) and Encana Corp. (ECA - Analyst Report).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.65 +6.44%
RF MICRO DE… RFMD 12.45 +5.87%
VASCO DATA… VDSI 14.82 +5.03%
STRATTEC SE… STRT 80.77 +3.68%
PATTERSON-U… PTEN 34.53 +2.94%