On Jun 22, Northern Oil and Gas, Inc. (NOG - Free Report) was upgraded to a Zacks Rank #1 (Strong Buy).
Factors of the Upgrade
The Zacks Consensus Estimate for 2018 earnings per share has been revised upward from 22 cents to 35 cents over the last 60 days. The Zacks Consensus Estimate for 2019 earnings rose to 34 cents from 24 cents This adds to the company’s already impressive earnings profile. Northern Oil has surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 160.4%.
The company has exposure to the Williston Basin, which is considered among the prolific oil plays in the United States. The broader Williston comprises Bakken and Three Forks oil resources. The company has extensive footprint in the core areas of Bakken and Three Forks, spread over 165,000 net mineral acres.
In the Williston Basin, Northern Oil has operating interests in roughly 2,600 gross wells, which indicates large oil production possibilities. These vast resources are likely to be a boon for the company as the prices of the commodity have bounced back from less than $27 per barrel in February 2016 to $65.
These fundamentals are reflected in the company’s impressive pricing chart. Over the past year, the stock has surged 94.5%, outperforming the 20.4% collective gain of the industry. On top of that, we are expecting the company to record earnings growth of 150% in 2018.
Other top-ranked prospective players in the energy space are Anadarko Petroleum Corp. (APC - Free Report) , Eclipse Resources Corp. (ECR - Free Report) and Wildhorse Resource Development Corp. (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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