Back to top

Image: Bigstock

HighPoint (HPR) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

HighPoint closed the most recent trading day at $9.96, moving -1.58% from the previous trading session. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq gained 0.09%.

Prior to today's trading, shares of the oil and gas company had lost 6.38% over the past month. This has lagged the Oils-Energy sector's gain of 10.02% and the S&P 500's gain of 4.43% in that time.

HPR will be looking to display strength as it nears its next earnings release. In that report, analysts expect HPR to post earnings of $2.43 per share. This would mark year-over-year growth of 197.2%. Meanwhile, our latest consensus estimate is calling for revenue of $59 million, down 51.56% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for HPR. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. HPR is currently a Zacks Rank #3 (Hold).

Investors should also note HPR's current valuation metrics, including its Forward P/E ratio of 1. For comparison, its industry has an average Forward P/E of 12.33, which means HPR is trading at a discount to the group.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 131, putting it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HPR in the coming trading sessions, be sure to utilize

Published in