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Bear of the Day: Gulfport Energy (GPOR)

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Oil prices have come down considerably from their highs. The global supply glut has given way to recession fears. Central banks around the world are tightening up, raising rates and staying tough on inflation. That has not only oil prices but oil stocks around the world coming down to Earth. One such stock is today’s Bear of the Day. Why? Well, earnings estimates for the stock are moving in the wrong direction, down. Beware when you see this troubling trend develop in stocks.

Today’s Bear of the Day is Gulport Energy (GPOR - Free Report) . Gulfport Energy Corporation engages in the exploration, development, acquisition, production of natural gas, crude oil, and natural gas liquids (NGL) in the United States. Its principal properties include Utica Shale covering an area approximately 187,000 net reservoir acres primarily located in Eastern Ohio; and SCOOP covering an area approximately 74,000 net reservoir acres primarily located in Garvin, Grady, and Stephens. As of December 31, 2021, it had 3.9 trillion cubic feet of natural gas equivalent to proved reserves; and proved undeveloped reserves comprising 8 MMbbl oil and 22 MMBbl NGL, and 1,550 Bcf natural gas.

Gulport Energy is a Zacks Rank #5 (Strong Sell) in the Oil and Gas – Exploration and Production – United States industry which ranks in the Bottom 35% of our Zacks Industry Rank. The reason for the unfavorable rank is that analysts have been cutting their estimates for the current year and next year. Over the last sixty days, two analysts have dropped their numbers for the current year while three have done so for next year. The bearish moves have brought our Zacks Consensus Estimates for the current year down from $22.35 to $18.36 while next year’s number is off from $27.41 to $23.10.

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It's important to note the positive here though. That $18.36 for the current year means a PE of just 3.82x earnings. That’s below even the industry average of 6.3x. And that is for a company that is still set to growth next year’s EPS by 25.8%.

There is only one stock within this industry that is seeing estimates move in a positive direction. That is Zacks Rank #2 (Buy) W&T Offshore (WTI - Free Report) . There are several stocks in the industry which are Zacks Rank #3 (Hold) stocks including Amplify Energy (AMPY - Free Report) .


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W&T Offshore, Inc. (WTI) - free report >>

Gulfport Energy Corporation (GPOR) - free report >>

Amplify Energy Corp. (AMPY) - free report >>

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