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Crescent Point (CPG) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Crescent Point Energy (CPG - Free Report) ? Shares have been on the move with the stock up 46.8% over the past month. The stock hit a new 52-week high of $4.2 in the previous session. Crescent Point Energy has gained 74.4% since the start of the year compared to the 20% move for the Zacks Oils-Energy sector and the 28.9% return for the Zacks Oil and Gas - Exploration and Production - Canadian industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 24, 2021, Crescent Point reported EPS of $0.12 versus consensus estimate of $0.05.
For the current fiscal year, Crescent Point is expected to post earnings of $0.55 per share on $1.84 billion in revenues. This represents a 120% change in EPS on a 44.97% change in revenues.
Valuation Metrics
While Crescent Point has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Crescent Point has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 0.9X versus its peer group's average of 3.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Crescent Point currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Crescent Point meets the list of requirements. Thus, it seems as though Crescent Point shares could still be poised for more gains ahead.
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Crescent Point (CPG) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Crescent Point Energy (CPG - Free Report) ? Shares have been on the move with the stock up 46.8% over the past month. The stock hit a new 52-week high of $4.2 in the previous session. Crescent Point Energy has gained 74.4% since the start of the year compared to the 20% move for the Zacks Oils-Energy sector and the 28.9% return for the Zacks Oil and Gas - Exploration and Production - Canadian industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 24, 2021, Crescent Point reported EPS of $0.12 versus consensus estimate of $0.05.
For the current fiscal year, Crescent Point is expected to post earnings of $0.55 per share on $1.84 billion in revenues. This represents a 120% change in EPS on a 44.97% change in revenues.
Valuation Metrics
While Crescent Point has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Crescent Point has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 0.9X versus its peer group's average of 3.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Crescent Point currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Crescent Point meets the list of requirements. Thus, it seems as though Crescent Point shares could still be poised for more gains ahead.