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Cimarex Energy (XEC) Up 48.6% QTD: What's Behind the Rally?
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Shares of Cimarex Energy Co. have jumped 48.6% quarter to date (QTD), compared with the industry’s 32% growth. The Zacks Rank #3 (Hold) stock has witnessed upward revisions in Zacks Consensus Estimate for 2020 and 2021 earnings in the past 30 days.
Let’s delve into the factors behind the stock’s price appreciation.
What’s Favoring the Stock?
Positive vaccine data raised hopes that fuel demand will recover to pre-pandemic levels once majority of people in the world get vaccinated. In fact, many analysts are expecting significant recovery to take place in 2021.
Notably, the vaccine developed by Pfizer Inc. (PFE - Free Report) and partner BioNTech is reportedly to be reviewed on Dec 10 by a panel of experts that advice the FDA. The shot will likely get authorization from FDA soon thereafter. Moderna, Inc. (MRNA - Free Report) has also submitted data to the FDA for emergency use authorization request. Early data from pivotal studies for both the shots showed to be more than 90% effective in protecting individuals from the deadly virus.
Thus, positive developments in the vaccine front are likely to restore fuel demand, which in turn is aiding oil and natural gas prices. Notably, although the price of West Texas Intermediate (WTI) crude, currently around $45 per barrel, is significantly below the 2020-beginning price of more than $60 mark, the commodity price has improved considerably in the past few months. Thus, Cimarex, a leading oil and gas exploration and production company, is well positioned to capitalize on the improving commodity prices. Notably, the company drills significant number of wells in the Permian, the most prolific basin in the United States.
DCP Midstream has seen upward estimate revisions for 2020 bottom line in the past 30 days.
Zacks Names “Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Cimarex Energy (XEC) Up 48.6% QTD: What's Behind the Rally?
Shares of Cimarex Energy Co. have jumped 48.6% quarter to date (QTD), compared with the industry’s 32% growth. The Zacks Rank #3 (Hold) stock has witnessed upward revisions in Zacks Consensus Estimate for 2020 and 2021 earnings in the past 30 days.
Let’s delve into the factors behind the stock’s price appreciation.
What’s Favoring the Stock?
Positive vaccine data raised hopes that fuel demand will recover to pre-pandemic levels once majority of people in the world get vaccinated. In fact, many analysts are expecting significant recovery to take place in 2021.
Notably, the vaccine developed by Pfizer Inc. (PFE - Free Report) and partner BioNTech is reportedly to be reviewed on Dec 10 by a panel of experts that advice the FDA. The shot will likely get authorization from FDA soon thereafter. Moderna, Inc. (MRNA - Free Report) has also submitted data to the FDA for emergency use authorization request. Early data from pivotal studies for both the shots showed to be more than 90% effective in protecting individuals from the deadly virus.
Thus, positive developments in the vaccine front are likely to restore fuel demand, which in turn is aiding oil and natural gas prices. Notably, although the price of West Texas Intermediate (WTI) crude, currently around $45 per barrel, is significantly below the 2020-beginning price of more than $60 mark, the commodity price has improved considerably in the past few months. Thus, Cimarex, a leading oil and gas exploration and production company, is well positioned to capitalize on the improving commodity prices. Notably, the company drills significant number of wells in the Permian, the most prolific basin in the United States.
Stock to Consider
A better-ranked stock worth considering in the energy space is DCP Midstream, LP , sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
DCP Midstream has seen upward estimate revisions for 2020 bottom line in the past 30 days.
Zacks Names “Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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