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Texas Pacific (TPL) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Texas Pacific (TPL - Free Report) closed at $1,633.30, marking a -1.57% move from the previous day. This change lagged the S&P 500's daily loss of 1.1%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq lost 3.27%.

Heading into today, shares of the landowner had lost 11.48% over the past month, lagging the Oils-Energy sector's loss of 10.83% and the S&P 500's loss of 3.02% in that time.

Investors will be hoping for strength from Texas Pacific as it approaches its next earnings release. In that report, analysts expect Texas Pacific to post earnings of $12.57 per share. This would mark a year-over-year decline of 0.55%. Meanwhile, our latest consensus estimate is calling for revenue of $164.54 million, up 11.67% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $54.24 per share and revenue of $702.77 million, which would represent changes of -6.11% and +5.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Texas Pacific. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.2% lower. Texas Pacific currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Texas Pacific has a Forward P/E ratio of 30.59 right now. For comparison, its industry has an average Forward P/E of 19.42, which means Texas Pacific is trading at a premium to the group.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.

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