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4 Reasons to Add Anadarko Petroleum (APC) to Your Portfolio
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Estimates for Anadarko Petroleum Corporation have been revised upward over the past 30 days, reflecting analysts’ confidence in the stock post solid first-quarter 2018 results. The Zacks Consensus Estimate for 2018 and 2019 earnings have moved up 29% and 41.4% to $2.54 and $2.97, respectively.
Shares of Anadarko Petroleum have gained 35.3% in the last 12 months compared with the Zacks Oil & Gas E&P Industry’s rally of 12%. The company is one of the largest independent oil and natural gas exploration and production companies. It has proved reserves of 1.44 Billion Barrels of Oil Equivalents at 2017-end. Anadarko Petroleum sports a Zacks Rank #1 (Strong Buy).
The stock carries an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
Let’s focus on the factors that make Anadarko Petroleum a profitable bet.
Earnings Result: Anadarko Petroleum delivered earnings of 52 cents per share in first-quarter 2018 results, which beat the Zacks Consensus Estimate of 43 cents by 20.9%.
Positive Earnings Surprise History: Anadarko Petroleum has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in the last six months, with the average being 260.5%. The consecutive estimate beats reflect the company’s operational excellence.
Shifting Focus: Anadarko Petroleum is strategically shifting its focus toward the liquid-rich regions. This resulted in higher production, increased sales volume and improved margin. To maintain focus on high-return domestic assets and achieve capital efficiency, the company has been selling non-core properties since 2004.
Dividend Hike & Share Buyback Strategy: Anadarko Petroleum’s board of directors have approved to raise quarterly dividend by 400% to 25 cents. Moreover, the board has authorized $500 million for share buyback. To raise the value of the investors, total repurchase program will amount to $3 billion. In the first quarter, the company utilized $1.9 billion from the program to repurchase shares.
BP pulled off a positive earnings surprise of 16.42% in the last quarter. The Zacks Consensus Estimate for 2018 EPS moved up 11% in the last 30 days.
Bonanza Creek Energy had a positive earnings surprise of 50.70% in the last quarter. The Zacks Consensus Estimate for 2018 EPS moved up 10% in the last 30 days.
Wildhorse Resource pulled off a positive earnings surprise of 32.35% in the last quarter. The Zacks Consensus Estimate for 2018 EPS moved up 12% in the last 30 days.
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.
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4 Reasons to Add Anadarko Petroleum (APC) to Your Portfolio
Estimates for Anadarko Petroleum Corporation have been revised upward over the past 30 days, reflecting analysts’ confidence in the stock post solid first-quarter 2018 results. The Zacks Consensus Estimate for 2018 and 2019 earnings have moved up 29% and 41.4% to $2.54 and $2.97, respectively.
Shares of Anadarko Petroleum have gained 35.3% in the last 12 months compared with the Zacks Oil & Gas E&P Industry’s rally of 12%. The company is one of the largest independent oil and natural gas exploration and production companies. It has proved reserves of 1.44 Billion Barrels of Oil Equivalents at 2017-end. Anadarko Petroleum sports a Zacks Rank #1 (Strong Buy).
The stock carries an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
Let’s focus on the factors that make Anadarko Petroleum a profitable bet.
Earnings Result: Anadarko Petroleum delivered earnings of 52 cents per share in first-quarter 2018 results, which beat the Zacks Consensus Estimate of 43 cents by 20.9%.
Positive Earnings Surprise History: Anadarko Petroleum has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in the last six months, with the average being 260.5%. The consecutive estimate beats reflect the company’s operational excellence.
Shifting Focus: Anadarko Petroleum is strategically shifting its focus toward the liquid-rich regions. This resulted in higher production, increased sales volume and improved margin. To maintain focus on high-return domestic assets and achieve capital efficiency, the company has been selling non-core properties since 2004.
Dividend Hike & Share Buyback Strategy: Anadarko Petroleum’s board of directors have approved to raise quarterly dividend by 400% to 25 cents. Moreover, the board has authorized $500 million for share buyback. To raise the value of the investors, total repurchase program will amount to $3 billion. In the first quarter, the company utilized $1.9 billion from the program to repurchase shares.
Other Stocks to Consider
A few other top-ranked stocks from the same space are BP plc (BP - Free Report) , Bonanza Creek Energy, Inc. and Wildhorse Resource Development Corporation . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BP pulled off a positive earnings surprise of 16.42% in the last quarter. The Zacks Consensus Estimate for 2018 EPS moved up 11% in the last 30 days.
Bonanza Creek Energy had a positive earnings surprise of 50.70% in the last quarter. The Zacks Consensus Estimate for 2018 EPS moved up 10% in the last 30 days.
Wildhorse Resource pulled off a positive earnings surprise of 32.35% in the last quarter. The Zacks Consensus Estimate for 2018 EPS moved up 12% in the last 30 days.
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 >>