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Here's Why You Should Buy Oasis Petroleum Stock Right Now

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On Jun 5, Oasis Petroleum Inc. (OAS - Free Report) has been upgraded to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

The Zacks Consensus Estimate for 2018 earnings per share has been revised upward from 23 cents to 39 cents over the last 60 days. The Zacks Consensus Estimate for 2019 earnings rose to 83 cents from 45 cents.

We expect the company to record earnings growth of 1,850% and 112.1% in 2018 and 2019, respectively. Oasis Petroleum has a strong earnings surprise history. The company surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, the average positive surprise being 74.9%.

The operation of Oasis Petroleum is primarily focused on the formations of Bakken and Three Forks shale, which are being presently exploited by the company. There have been significant accumulations of crude in these formations, boosting the company’s business as crude price has already recovered partially.

Oasis Petroleum also has less exposure to debt as compared to the Zacks Oil & Gas Exploration industry. The company’s debt-to-capitalization ratio stands at 40.96%, lower than the industry’s 46.23%. Moreover, the share price of Oasis Petroleum has jumped 27.5% over the past year, outperforming the industry’s13.1% growth. 

Other Stocks to Consider

Other prospective players in the energy space are Anadarko Petroleum Corporation (APC - Free Report) , Eclipse Resources Corporation (ECR - Free Report) and Wildhorse Resource Development Corporation (WRD - Free Report) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

We expect Anadarko Petroleum to witness year-over-year earnings growth of 229.6% in 2018.

Eclipse is expected to record revenue growth of 13.5% through 2018.

Wildhorse will likely see year-over-year earnings growth of 309.3% in 2018.

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