We are upbeat about Cabot Oil & Gas Corporation’s prospects and believe that it is a promising pick at the moment.
The company currently carries a Zacks Rank #2 (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 (Strong Buy) or 2 offer the best opportunities for investors.
Let’s delve deeper to analyze the factors that make this upstream energy player an attractive investment option.
Cabot Oil & Gas is among the leading explorers and producers of natural gas with focus exclusively 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%.
Since almost all of Cabot’s production comprises natural gas, the company is well placed to capitalize on the growing clean energy demand. Notably, the natural gas pricing scenario is getting healthier as the nation is gradually entering the winter season and there will be demand for natural gas for room heating purposes.
Owing to these developments, we expect the company to record earnings growth of 107.6% and 58.9% through 2018 and 2019, respectively.
Other Stocks to Consider
Other prospective players in the energy space are Hess Corporation (HES - Free Report) , Enterprise Products Partners L.P. (EPD - Free Report) and Energen Corporation . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hess beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 230.5%.
Enterprise Products surpassed the Zacks Consensus Estimate in the prior four quarters, the average positive earnings surprise being 9.3%.
Energen has an average positive earnings surprise of 18.6% for the prior four quarters.
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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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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 >>
We are upbeat about Cabot Oil & Gas Corporation’s prospects and believe that it is a promising pick at the moment.
The company currently carries a Zacks Rank #2 (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 (Strong Buy) or 2 offer the best opportunities for investors.
Let’s delve deeper to analyze the factors that make this upstream energy player an attractive investment option.
Cabot Oil & Gas is among the leading explorers and producers of natural gas with focus exclusively 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%.
Since almost all of Cabot’s production comprises natural gas, the company is well placed to capitalize on the growing clean energy demand. Notably, the natural gas pricing scenario is getting healthier as the nation is gradually entering the winter season and there will be demand for natural gas for room heating purposes.
Owing to these developments, we expect the company to record earnings growth of 107.6% and 58.9% through 2018 and 2019, respectively.
Other Stocks to Consider
Other prospective players in the energy space are Hess Corporation (HES - Free Report) , Enterprise Products Partners L.P. (EPD - Free Report) and Energen Corporation . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hess beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 230.5%.
Enterprise Products surpassed the Zacks Consensus Estimate in the prior four quarters, the average positive earnings surprise being 9.3%.
Energen has an average positive earnings surprise of 18.6% for the prior four quarters.
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>>
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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