We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why it is Worth Investing in Newfield (NFX) Stock Now
Read MoreHide Full Article
On Jan 24, Newfield Exploration Company was raised to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Earnings estimate revisions are at the core of the Zacks investment philosophy. Stocks that have recently seen upward revision in estimates tend to outperform the market over the next nine to 12 months.
Over the last 60 days, the Zacks Consensus Estimate for 2017 earnings has been revised higher from $2.10 to $2.15. Also, for 2018, estimates were raised from $2.44 to $2.82.
Newfield has an impressive earnings surprise history. The upstream player managed to surpass the Zacks Consensus Estimate in three of the prior four quarters, the average positive surprise being 18.6%. Also, we expect the company to witness year-over-year earnings improvement of 110.8% in 2017 and 31.4% in 2018.
The business scenario looks profitable as West Texas Intermediate (WTI) oil is trading above the $60-per-barrel psychological mark, way higher than the historical low touched in February 2016. Also, natural gas crossed the mark of $3 per million British Thermal Unit (BTU). Overall, the favorable commodity pricing scenario could fetch the exploration and production company attractive cashflow.
The healthy commodity prices are especially favorable for Newfield as the company has a premium inventory of drilling wells in prospective oil and gas resources. In the liquid-rich Anadarko Basin, the upstream energy player has 350,000 net acres.
Newfield has no current debt and its long-term debt has declined steeply since 2014. Moreover, cash & equivalents rose significantly since 2016, reflecting strong balance sheet.
The company’s pricing chart looks impressive. Over the last six months, the stock has rallied 27%, outperforming the industry’s 21.9% gain.
Headquartered in Houston, TX, EOG Resources is a leading upstream energy player. We expect the company to see earnings growth of 157.2% and 206.9% in 2017 and 2018, respectively.
Headquartered in Houston, TX, Cabot is involved in exploration of oil and gas. The stock will likely report earnings growth of 357.1% in 2017.
Matador Resources, headquartered in Dallas, TX, is a leading upstream firm with operations in the prospective Eagle Ford shale play. The company beat the Zacks Consensus Estimate of earnings in three of the last four quarters, with an average positive surprise of 34.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why it is Worth Investing in Newfield (NFX) Stock Now
On Jan 24, Newfield Exploration Company was raised to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Earnings estimate revisions are at the core of the Zacks investment philosophy. Stocks that have recently seen upward revision in estimates tend to outperform the market over the next nine to 12 months.
Over the last 60 days, the Zacks Consensus Estimate for 2017 earnings has been revised higher from $2.10 to $2.15. Also, for 2018, estimates were raised from $2.44 to $2.82.
Newfield has an impressive earnings surprise history. The upstream player managed to surpass the Zacks Consensus Estimate in three of the prior four quarters, the average positive surprise being 18.6%. Also, we expect the company to witness year-over-year earnings improvement of 110.8% in 2017 and 31.4% in 2018.
The business scenario looks profitable as West Texas Intermediate (WTI) oil is trading above the $60-per-barrel psychological mark, way higher than the historical low touched in February 2016. Also, natural gas crossed the mark of $3 per million British Thermal Unit (BTU). Overall, the favorable commodity pricing scenario could fetch the exploration and production company attractive cashflow.
The healthy commodity prices are especially favorable for Newfield as the company has a premium inventory of drilling wells in prospective oil and gas resources. In the liquid-rich Anadarko Basin, the upstream energy player has 350,000 net acres.
Newfield has no current debt and its long-term debt has declined steeply since 2014. Moreover, cash & equivalents rose significantly since 2016, reflecting strong balance sheet.
The company’s pricing chart looks impressive. Over the last six months, the stock has rallied 27%, outperforming the industry’s 21.9% gain.
Other Stocks to Consider
A few other prospective stocks in the energy sector are EOG Resources, Inc. (EOG - Free Report) , Cabot Oil & Gas Corporation and Matador Resources Company (MTDR - Free Report) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Houston, TX, EOG Resources is a leading upstream energy player. We expect the company to see earnings growth of 157.2% and 206.9% in 2017 and 2018, respectively.
Headquartered in Houston, TX, Cabot is involved in exploration of oil and gas. The stock will likely report earnings growth of 357.1% in 2017.
Matador Resources, headquartered in Dallas, TX, is a leading upstream firm with operations in the prospective Eagle Ford shale play. The company beat the Zacks Consensus Estimate of earnings in three of the last four quarters, with an average positive surprise of 34.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>