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Geopark ((GPRK - Free Report) ) is a Zacks Rank #1 (Strong Buy) that has an A for Value and a C for Growth. This is an oil and gas play that has been running higher since early September. With the conflict in the Middle East sending oil prices higher, it should keep investors interested in the sector. Let’s take a deeper dive into why I like this company for my Bull of the Day.
Description
GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America.
Earnings History
Earnings are at the center of the stock universe. I like to look for companies which are meeting or beating expectations. I also like to see a new trend in meets or beats developing. Here, Geopark had a couple of bad quarters where they failed to meet the number. Recently that changed with the last quarter.
The company reported EPS of 59 cents. Inline with expectations and leaving the losing streak at 2 quarters.
Earnings Estimate Revisions
That beat prompted analysts to increase their earnings number. Over the last sixty days I see estimates revised upwards for the current quarter, next quarter, current year and next year.
Current year Zacks Consensus Estimate moved up from $2.52 to $2.87. For the full year next year, that number went up from $3.07 to $3.52.
Growth
I am seeing growth on both the top and bottom line for Geopark. Next year’s sales number is forecast to grow over 7%.
Earnings growth is better at 22% for next year.
Remember, we saw high oil prices a year ago which allowed the oil patch to lead the market. When oil prices came down, a lot of the earnings growth left along with it. Seeing a return to growth next year is that much stronger with this backdrop.
Valuation
The contraction in earnings this year put a damper on the stock price. This stock went on fire sale as a result. I am seeing 3.7x forward PE. That is cheap any way you look at. Very cheap for a company looking at 22% earnings growth next year.
Prices to sales looks attractive to me at 0.72x.
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Bull of the Day: Geopark (GPRK)
Geopark ((GPRK - Free Report) ) is a Zacks Rank #1 (Strong Buy) that has an A for Value and a C for Growth. This is an oil and gas play that has been running higher since early September. With the conflict in the Middle East sending oil prices higher, it should keep investors interested in the sector. Let’s take a deeper dive into why I like this company for my Bull of the Day.
Description
GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America.
Earnings History
Earnings are at the center of the stock universe. I like to look for companies which are meeting or beating expectations. I also like to see a new trend in meets or beats developing. Here, Geopark had a couple of bad quarters where they failed to meet the number. Recently that changed with the last quarter.
The company reported EPS of 59 cents. Inline with expectations and leaving the losing streak at 2 quarters.
Earnings Estimate Revisions
That beat prompted analysts to increase their earnings number. Over the last sixty days I see estimates revised upwards for the current quarter, next quarter, current year and next year.
Current year Zacks Consensus Estimate moved up from $2.52 to $2.87. For the full year next year, that number went up from $3.07 to $3.52.
Growth
I am seeing growth on both the top and bottom line for Geopark. Next year’s sales number is forecast to grow over 7%.
Earnings growth is better at 22% for next year.
Remember, we saw high oil prices a year ago which allowed the oil patch to lead the market. When oil prices came down, a lot of the earnings growth left along with it. Seeing a return to growth next year is that much stronger with this backdrop.
Valuation
The contraction in earnings this year put a damper on the stock price. This stock went on fire sale as a result. I am seeing 3.7x forward PE. That is cheap any way you look at. Very cheap for a company looking at 22% earnings growth next year.
Prices to sales looks attractive to me at 0.72x.