Shares of Whiting Petroleum have been strong performers lately, with the stock up 24.6% over the past month. The stock hit a new 52-week high of $62.47 in the previous session. Whiting Petroleum has gained 148.4% since the start of the year compared to the 32.3% move for the Zacks Oils-Energy sector and the 106% return for the Zacks Oil and Gas - Exploration and Production - United States industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 4, 2021, Whiting Petroleum Corporation reported EPS of $3.01 versus consensus estimate of $2.45.
For the current fiscal year, Whiting Petroleum Corporation is expected to post earnings of $11.38 per share on $1.14 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $11.31 per share on $1.12 billion in revenues. This represents a year-over-year change of -0.57% and -1.95%, respectively.
Valuation Metrics
Whiting Petroleum Corporation may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Whiting Petroleum Corporation has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 5.5X current fiscal year EPS estimates. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Whiting Petroleum Corporation currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Whiting Petroleum Corporation passes the test. Thus, it seems as though Whiting Petroleum Corporation shares could have a bit more room to run in the near term.
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Whiting Petroleum Corporation (WLL) Soars to 52-Week High, Time to Cash Out?
Shares of Whiting Petroleum have been strong performers lately, with the stock up 24.6% over the past month. The stock hit a new 52-week high of $62.47 in the previous session. Whiting Petroleum has gained 148.4% since the start of the year compared to the 32.3% move for the Zacks Oils-Energy sector and the 106% return for the Zacks Oil and Gas - Exploration and Production - United States industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 4, 2021, Whiting Petroleum Corporation reported EPS of $3.01 versus consensus estimate of $2.45.
For the current fiscal year, Whiting Petroleum Corporation is expected to post earnings of $11.38 per share on $1.14 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $11.31 per share on $1.12 billion in revenues. This represents a year-over-year change of -0.57% and -1.95%, respectively.
Valuation Metrics
Whiting Petroleum Corporation may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Whiting Petroleum Corporation has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 5.5X current fiscal year EPS estimates. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Whiting Petroleum Corporation currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Whiting Petroleum Corporation passes the test. Thus, it seems as though Whiting Petroleum Corporation shares could have a bit more room to run in the near term.