We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why it is Worth Investing in Cactus (WHD) Stock Now
Read MoreHide Full Article
Cactus Inc. (WHD - Free Report) has witnessed upward earnings estimate revisions for 2022 in the past 60 days. Shares of the company, currently sporting a Zacks Rank #1 (Strong Buy), have jumped 50% year to date compared with 25.6% growth of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
Factors Favoring the Stock
Headquartered in Houston, TX, Cactus manufactures, designs, and sells wellhead and pressure control equipment. The products are utilized by clients for drilling and completing onshore oil and natural gas wells. With a market cap of $4.3 billion, the company engages in creating long-term value for shareholders.
Cactus generates significant cash flows by selling and renting wellhead and pressure control equipment. The company’s products like Cactus SafeDrill wellhead systems, SafeClamp and Safe Inject systems helped generate positive free cash flows even amid the coronavirus pandemic-induced volatility.
Due to the rising customer drilling activities, Cactus has been witnessing higher sales of its wellhead and production-related equipment. This will get translated into increased cash flows. In 2021, the company reported cash flows from operating activities of $63.8 million.
Cactus is ahead of most peers since its highly-engineered products can improve pad drilling and completion efficiencies. Along with the enhancement of safety measures, the most advanced wellhead and frac solutions offered by the company can deliver significant time savings. The advanced wellhead and frac solutions can save more than 30 hours of rig time per well.
The company expects the pace of the addition of rigs in oil and gas resources to remain healthy, considering that the pricing environment of commodities is supportive. Being a manufacturer and designer of highly engineered wellhead and pressure control equipment, Cactus expects revenue growth to continue across all of its business lines in the March-end quarter of this year.
Moreover, Cactus has a strong balance sheet, with no bank debt outstanding as of Dec 31, 2021. At the end of the fourth quarter, the company had cash and cash equivalents of $301.7 million. This will provide it with immense financial flexibility.
DCP Midstream, LP , based in Denver, CO, is a leading energy infrastructure firm. For the year ended Dec 31, 2021, DCP generated $122 million of excess free cash flow, which is about 44% higher than the 2020 level of $85 million.
DCP Midstream's earnings for 2022 are expected to grow 139% year over year. For 2022, DCP Midstream projects adjusted EBITDA of $1,350-$1,500 million, significantly higher than $330 million in 2021.
Petrobras (PBR - Free Report) is one of the largest publicly-traded Latin American oil companies, which dominates Brazil’s oil and gas sector. At the end of 2021, Petrobras had cash and cash equivalents of $10,480 million. Free cash flow for 2021 was up 36.7% year over year to $31,466 million.
Petrobras’ earnings for 2022 are expected to grow 55.5% year over year. In fourth-quarter 2021, PBR generated positive free cash flow for the 27th consecutive quarter, with the metric marginally rising to $7,511 million from $5,684 million recorded in last year’s corresponding period.
PBF Energy Inc. (PBF - Free Report) , based in New Jersey, is a leading refiner of crude oil. PBF has one of the most complex refining systems in the United States, with an overall Nelson Complexity Index reading of 12.8.
PBF Energy’s earnings for 2021 are expected to surge 178% year over year. In 2021, revenues for the Refining segment were $27,202 million, contributing almost 99% to the company’s total revenues. The Logistics segment generated a profit of $355.5 million, accounting for 1% of PBF's 2021 revenues.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why it is Worth Investing in Cactus (WHD) Stock Now
Cactus Inc. (WHD - Free Report) has witnessed upward earnings estimate revisions for 2022 in the past 60 days. Shares of the company, currently sporting a Zacks Rank #1 (Strong Buy), have jumped 50% year to date compared with 25.6% growth of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
Factors Favoring the Stock
Headquartered in Houston, TX, Cactus manufactures, designs, and sells wellhead and pressure control equipment. The products are utilized by clients for drilling and completing onshore oil and natural gas wells. With a market cap of $4.3 billion, the company engages in creating long-term value for shareholders.
Cactus generates significant cash flows by selling and renting wellhead and pressure control equipment. The company’s products like Cactus SafeDrill wellhead systems, SafeClamp and Safe Inject systems helped generate positive free cash flows even amid the coronavirus pandemic-induced volatility.
Due to the rising customer drilling activities, Cactus has been witnessing higher sales of its wellhead and production-related equipment. This will get translated into increased cash flows. In 2021, the company reported cash flows from operating activities of $63.8 million.
Cactus is ahead of most peers since its highly-engineered products can improve pad drilling and completion efficiencies. Along with the enhancement of safety measures, the most advanced wellhead and frac solutions offered by the company can deliver significant time savings. The advanced wellhead and frac solutions can save more than 30 hours of rig time per well.
The company expects the pace of the addition of rigs in oil and gas resources to remain healthy, considering that the pricing environment of commodities is supportive. Being a manufacturer and designer of highly engineered wellhead and pressure control equipment, Cactus expects revenue growth to continue across all of its business lines in the March-end quarter of this year.
Moreover, Cactus has a strong balance sheet, with no bank debt outstanding as of Dec 31, 2021. At the end of the fourth quarter, the company had cash and cash equivalents of $301.7 million. This will provide it with immense financial flexibility.
Other Key Picks
Investors interested in the energy sector might also look at the following companies that presently flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DCP Midstream, LP , based in Denver, CO, is a leading energy infrastructure firm. For the year ended Dec 31, 2021, DCP generated $122 million of excess free cash flow, which is about 44% higher than the 2020 level of $85 million.
DCP Midstream's earnings for 2022 are expected to grow 139% year over year. For 2022, DCP Midstream projects adjusted EBITDA of $1,350-$1,500 million, significantly higher than $330 million in 2021.
Petrobras (PBR - Free Report) is one of the largest publicly-traded Latin American oil companies, which dominates Brazil’s oil and gas sector. At the end of 2021, Petrobras had cash and cash equivalents of $10,480 million. Free cash flow for 2021 was up 36.7% year over year to $31,466 million.
Petrobras’ earnings for 2022 are expected to grow 55.5% year over year. In fourth-quarter 2021, PBR generated positive free cash flow for the 27th consecutive quarter, with the metric marginally rising to $7,511 million from $5,684 million recorded in last year’s corresponding period.
PBF Energy Inc. (PBF - Free Report) , based in New Jersey, is a leading refiner of crude oil. PBF has one of the most complex refining systems in the United States, with an overall Nelson Complexity Index reading of 12.8.
PBF Energy’s earnings for 2021 are expected to surge 178% year over year. In 2021, revenues for the Refining segment were $27,202 million, contributing almost 99% to the company’s total revenues. The Logistics segment generated a profit of $355.5 million, accounting for 1% of PBF's 2021 revenues.