Have you been paying attention to shares of Crescent Point Energy (CPG - Free Report) ? Shares have been on the move with the stock up 47.3% over the past month. The stock hit a new 52-week high of $4.66 in the previous session. Crescent Point Energy has gained 95.7% since the start of the year compared to the 25.2% move for the Zacks Oils-Energy sector and the 44% return for the Zacks Oil and Gas - Exploration and Production - Canadian industry.
What's Driving the Outperformance?
The stock has an impressive 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 $0.58 per share on $1.84 billion in revenues. This represents a 132% change in EPS on a 44.97% change in revenues.
Valuation Metrics
Crescent Point may be at a 52-week high right now, but what might the future hold for the stock? 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 they provide investors with an additional way to sort 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 7.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 0.7X versus its peer group's average of 3.9X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Crescent Point currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
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 fits the bill. Thus, it seems as though Crescent Point shares could have potential in the weeks and months to come.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Have you been paying attention to shares of Crescent Point Energy (CPG - Free Report) ? Shares have been on the move with the stock up 47.3% over the past month. The stock hit a new 52-week high of $4.66 in the previous session. Crescent Point Energy has gained 95.7% since the start of the year compared to the 25.2% move for the Zacks Oils-Energy sector and the 44% return for the Zacks Oil and Gas - Exploration and Production - Canadian industry.
What's Driving the Outperformance?
The stock has an impressive 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 $0.58 per share on $1.84 billion in revenues. This represents a 132% change in EPS on a 44.97% change in revenues.
Valuation Metrics
Crescent Point may be at a 52-week high right now, but what might the future hold for the stock? 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 they provide investors with an additional way to sort 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 7.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 0.7X versus its peer group's average of 3.9X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Crescent Point currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
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 fits the bill. Thus, it seems as though Crescent Point shares could have potential in the weeks and months to come.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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