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Noble Energy Hits 52-Week High on Steady Growth Initiatives

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Noble Energy Inc. hit a new 52-week high of $35.63 during yesterday’s trading session before closing a tad lower at $35.56. In a year’s time, the stock has delivered a return of 15.7% outperforming its industry’s rally of 10.0%.

 


 

Over the past 52 weeks, Noble Energy’s share price has ranged from a low of $22.99 to a high of $35.63. The average volume of shares traded over the past three months is approximately 4.65 million.

What’s Driving the Rally?

Noble Energy’s shares have been on the rise following first-quarter 2018 results, declared on May 1. The company posted first-quarter earnings of 35 cents per share, surpassing the Zacks Consensus Estimate by 25.0%. Moreover, revenues also surpassed the Zacks Consensus Estimate by 7.3%.

Noble Energy has been a consistent performer, having delivered positive earnings surprise in each of the last four quarters, resulting in an average of 237.02%.

Noble Energy is currently focusing on its best-return assets. Thanks to the expected robust performance from its high-quality assets, Noble Energy revised its 2018 sales volume upward to the range of 350-360 thousand barrels of oil equivalent per day (MBoe/d), up from the prior range of 343-353 MBoe/d.

Solid production from Noble Energy’s organic and inorganic assets and increasing demand from both international and domestic assets have been driving its results. Noble will invest nearly 70% of its planned capital expenditure for 2018 on its U.S. onshore assets.

Thanks to its strong performance, the Zacks Consensus Estimate for 2018 and 2019 has moved up to $1.11 and $1.64, respectively, in the past 60 days. The 2018 and 2019 earnings estimates increased 24.7% and 20.6%, respectively, in the same time frame.

Zacks Rank and Stocks to Consider

Noble Energy currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the same space worth considering are Bonanza Creek Energy, Inc. , WildHorse Resource Development Corporation and GeoPark Limited (GPRK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bonanza Creek Energy reported a positive earnings surprise of 50.70% in the last reported quarter. Its 2018 and 2019 estimates have moved up 14.5% and 43.9%, respectively, in the past 60 days.

WildHorse Resource Development delivered a positive earnings surprise of 32.35% in the last reported quarter. Its 2018 and 2019 estimates have moved up 17.7% and 27.9%, respectively, over the past 60 days.

GeoPark Limited’s 2018 and 2019 earnings estimates have moved up 65.3% and 25.8%, respectively, in the past 60 days.

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