PDC Energy is a Zacks Rank #1 (Strong Buy) and it could be the oil patch play for your portfolio. Let’s take a deeper look at this stock in this Bull of the Day article.
Description
PDC Energy, Inc. is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Headquartered in Denver, CO, the firm is focused on the Wattenberg Field in Colorado and the Delaware Basin in Texas.
Earnings History
The first thing I do when I look at stock is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has been able to communicate to the market. A stock that consistently beats is one that has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PDCE, I see great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 79%, which means that they are posting results that are more than what is expected.
There was a monster beat four quarters ago (160%) and that skewed the average up quite a bit. Still, the company beats and that helps boost estimates higher and higher.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PDCE, I see estimates moving higher.
Over the last 60 days I am seeing several increases.
This quarter has moved from 78 cents to $1.00 to $1.07.
Next quarter has seen a similar move from 68 cents to 93 cents and is now at $1.16.
The full year number has increase from $3.17 to $4.54 over the last 60 days.
Next year is at $5.32 and that is up from $3.38 over the same time horizon.
Positive movement in earnings estimates like that are the reason that this stock is a Zacks Rank #1 (Strong Buy).
Valuation
PDCE has a very reasonable valuation. I see a 9.9x forward earnings multiple and that compares favorably with the industry average of a little more than 12x. The price book of 1.7x is also very reasonable. Price to sales at 5x is a little above the industry average of 3.5x. Analysts are calling for topline growth of 24% this year and 11% next year, so that is why the stock has a Zacks Style Score of A for Growth.
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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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Bull Of The Day: PDC Energy (PDCE)
PDC Energy is a Zacks Rank #1 (Strong Buy) and it could be the oil patch play for your portfolio. Let’s take a deeper look at this stock in this Bull of the Day article.
Description
PDC Energy, Inc. is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Headquartered in Denver, CO, the firm is focused on the Wattenberg Field in Colorado and the Delaware Basin in Texas.
Earnings History
The first thing I do when I look at stock is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has been able to communicate to the market. A stock that consistently beats is one that has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PDCE, I see great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 79%, which means that they are posting results that are more than what is expected.
There was a monster beat four quarters ago (160%) and that skewed the average up quite a bit. Still, the company beats and that helps boost estimates higher and higher.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PDCE, I see estimates moving higher.
Over the last 60 days I am seeing several increases.
This quarter has moved from 78 cents to $1.00 to $1.07.
Next quarter has seen a similar move from 68 cents to 93 cents and is now at $1.16.
The full year number has increase from $3.17 to $4.54 over the last 60 days.
Next year is at $5.32 and that is up from $3.38 over the same time horizon.
Positive movement in earnings estimates like that are the reason that this stock is a Zacks Rank #1 (Strong Buy).
Valuation
PDCE has a very reasonable valuation. I see a 9.9x forward earnings multiple and that compares favorably with the industry average of a little more than 12x. The price book of 1.7x is also very reasonable. Price to sales at 5x is a little above the industry average of 3.5x. Analysts are calling for topline growth of 24% this year and 11% next year, so that is why the stock has a Zacks Style Score of A for Growth.
Chart
PDC Energy, Inc. Price and Consensus
PDC Energy, Inc. price-consensus-chart | PDC Energy, Inc. Quote
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>