On Aug 16, VermilionEnergy Inc. (VET - Free Report) has been raised to a Zacks Rank #1 (Strong Buy), implying that the stock will significantly outperform the broader U.S. equity market over the next one to three months.
Why the Upgrade?
Over the past 60 days, the Zacks Consensus Estimate for third-quarter 2018 has been revised upward from 34 cents to 57 cents. The Zacks Consensus Estimate for fourth-quarter 2018 earnings rose to 56 cents from 36 cents over the same period.
Moreover, we expect the company to record earnings growth of 60.8% and 140.6% in 2018 and 2019, respectively.
Vermilion is strongly committed in returning cash to shareholders through dividend payments. The company started paying dividend in 2003 and since then has hiked the payout four times. Importantly, Vermilion’s dividend yield of 6.9% is impressive and is significantly higher than the 4.08% collective yield of the stocks belonging to the industry.
Being a leading exploration and production player, the Calgary, Canada-based firm has been consistently boosting production over the years. Through 2012 since 2003, the company’s daily oil equivalent production saw a compound annual growth rate (CAGR) of 6%. The company expects CAGR to jump to 17% through 2018-end since 2013. The production story seems impressive, especially when the crude pricing scenario is favorable.
On top of that, Vermilion has a strong balance sheet when compared to the industry. The company’s debt-to-capitalization ratio of 37.7% is significantly lower than the industry’s 51.7%.
Other Stocks to Consider
Other prospective players in the energy space are McDermott International, Inc. , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.
Petrobras beat the Zacks Consensus Estimate in three of the past four quarters, the average positive earnings surprise being 10.4%.
Helix Energy’s bottom line surpassed the consensus mark in three of the last four quarters, the average positive earnings surprise being 66.7%.
Will You Make a Fortune on the Shift to Electric Cars?
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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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 >>
On Aug 16, VermilionEnergy Inc. (VET - Free Report) has been raised to a Zacks Rank #1 (Strong Buy), implying that the stock will significantly outperform the broader U.S. equity market over the next one to three months.
Why the Upgrade?
Over the past 60 days, the Zacks Consensus Estimate for third-quarter 2018 has been revised upward from 34 cents to 57 cents. The Zacks Consensus Estimate for fourth-quarter 2018 earnings rose to 56 cents from 36 cents over the same period.
Moreover, we expect the company to record earnings growth of 60.8% and 140.6% in 2018 and 2019, respectively.
Vermilion is strongly committed in returning cash to shareholders through dividend payments. The company started paying dividend in 2003 and since then has hiked the payout four times. Importantly, Vermilion’s dividend yield of 6.9% is impressive and is significantly higher than the 4.08% collective yield of the stocks belonging to the industry.
Being a leading exploration and production player, the Calgary, Canada-based firm has been consistently boosting production over the years. Through 2012 since 2003, the company’s daily oil equivalent production saw a compound annual growth rate (CAGR) of 6%. The company expects CAGR to jump to 17% through 2018-end since 2013. The production story seems impressive, especially when the crude pricing scenario is favorable.
On top of that, Vermilion has a strong balance sheet when compared to the industry. The company’s debt-to-capitalization ratio of 37.7% is significantly lower than the industry’s 51.7%.
Other Stocks to Consider
Other prospective players in the energy space are McDermott International, Inc. , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.
Petrobras beat the Zacks Consensus Estimate in three of the past four quarters, the average positive earnings surprise being 10.4%.
Helix Energy’s bottom line surpassed the consensus mark in three of the last four quarters, the average positive earnings surprise being 66.7%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
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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