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2 Reasons Why Cabot (COG) is a Strong Buy Stock Right Now
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We are upbeat about Cabot Oil & Gas Corporation’s prospects and believe it is a promising pick at the moment.
The company currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best opportunities for investors.
Let’s delve deeper to analyze the factors that make this upstream energy player an attractive investment option.
Access to Marcellus’s Core Gas Acres
Cabot Oil & Gas is among the leading explorers and producers of natural gas with exclusive focus on domestic resources. In the United States, the company primarily operates in gas-rich Marcellus Shale, where more than 80% of capital budget has been allocated.
In the Marcellus Shale, the company has roughly 3,000 of undrilled prospective drilling locations, reflecting strong production prospects. In fact, through 2018, the company estimates production growth of 7% to 8%. Through 2019, Cabot expects production growth to be higher at 20-25%.
Well Placed to Capitalize Clean Energy Demand
Since almost all of Cabot’s production comprises natural gas, the company is well placed to capitalize on the growing clean energy demand.
Investors should know that through 2018, natural gas contributed to roughly 32% of the nation’s electricity generation, more than coal, per U.S. Energy Information Administration.
Other Stocks to Consider
Other prospective players in the energy space are TC PipeLines, LP , Enterprise Products Partners L.P. (EPD - Free Report) and Unit Corporation . While TC PipeLines carries a Zacks Rank #2, Enterprise Products and Unit sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.
Enterprise Products will likely post earnings growth of 36.4% and 6.8% through 2018 and 2019, respectively.
Unit Corporation surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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2 Reasons Why Cabot (COG) is a Strong Buy Stock Right Now
We are upbeat about Cabot Oil & Gas Corporation’s prospects and believe it is a promising pick at the moment.
The company currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best opportunities for investors.
Let’s delve deeper to analyze the factors that make this upstream energy player an attractive investment option.
Access to Marcellus’s Core Gas Acres
Cabot Oil & Gas is among the leading explorers and producers of natural gas with exclusive focus on domestic resources. In the United States, the company primarily operates in gas-rich Marcellus Shale, where more than 80% of capital budget has been allocated.
In the Marcellus Shale, the company has roughly 3,000 of undrilled prospective drilling locations, reflecting strong production prospects. In fact, through 2018, the company estimates production growth of 7% to 8%. Through 2019, Cabot expects production growth to be higher at 20-25%.
Well Placed to Capitalize Clean Energy Demand
Since almost all of Cabot’s production comprises natural gas, the company is well placed to capitalize on the growing clean energy demand.
Investors should know that through 2018, natural gas contributed to roughly 32% of the nation’s electricity generation, more than coal, per U.S. Energy Information Administration.
Other Stocks to Consider
Other prospective players in the energy space are TC PipeLines, LP , Enterprise Products Partners L.P. (EPD - Free Report) and Unit Corporation . While TC PipeLines carries a Zacks Rank #2, Enterprise Products and Unit sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.
Enterprise Products will likely post earnings growth of 36.4% and 6.8% through 2018 and 2019, respectively.
Unit Corporation surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>