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4 Reasons to Add Oasis Petroleum (OAS) to Your Portfolio

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Estimates for Oasis Petroleum Inc. (OAS - Free Report) have been revised upward over the past 30 days, reflecting analyst’s confidence in the stock post solid first-quarter 2018 results. The Zacks Consensus Estimate for 2018 and 2019 earnings has been moved up 8.3% and 22.1% to 39 cents and 83 cents per share, respectively.

The Houston, TX-based company is an independent exploration and production entity focused on acquisition and development of oil and natural gas resources.

The stock has a VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer best investment bets.

Let’s focus on the factors that make the company an attractive stock to hold on to for greater returns.

Positive Earnings Surprise History: The company has an encouraging earnings surprise history. The bottom line surpassed the Zacks Consensus Estimate in each of the last four quarters, the average positive surprise being 74.9%. The consecutive estimate beats reflect the company’s operational excellence.

Price Appreciation: Shares of this Zacks Rank #1 (Strong Buy) company have surged 32% over a year, outperforming the industry’s 11.2% growth.


Raised Production Guidance: It has raised 2018 total production in the 81-84 million barrels of oil equivalent per day (Mboep/d) band, up from the prior forecast of 80-83 Mboe/d, as the company has secured a second rig in Permian Basin.

Growth Projections: The Zacks Consensus Estimate for current-year earnings per share is pegged at 39 cents per share, representing a whopping year-over-year increase of 1850.0%.

For 2019, the consensus estimate for the bottom line stands at 83 cents per share, depicting a 112.1% year-over-year skyrocketing rise.

Other Stocks to Consider

Some other top-ranked stocks from the same industry are Anadarko Petroleum Corporation (APC - Free Report) , Wildhorse Resource Development Corporation (WRD - Free Report) and Bonanza Creek Energy, Inc. (BCEI - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

Anadarko Petroleum carries a Zacks Rank #2 (Buy). It pulled off an average four-quarter positive surprise of 89.24%. The Zacks Consensus Estimate for 2018 EPS has been raised 13.3% in the last 30 days to $2.73 per share.

Wildhorse Resource Development sports a Zacks Rank of 1 and delivered an average four-quarter beat of 17.02%. The Zacks Consensus Estimate for 2018 EPS has been increased 8% in the last 30 days to $1.76 per share.

Bonanza Creek Energy is a Zacks #1 Ranked player. It came up with an average four-quarter earnings surprise of 215.36%. The Zacks Consensus Estimate for 2018 EPS has been revised 7.9% upward in the last 30 days to $4.52 per share.

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