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Here's Why Cabot (COG) Stock is Worth Investing in Right Now

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We are upbeat about Cabot Oil & Gas Corporation’s prospects and believe that it is a promising pick at the moment.

The company currently carries a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities for investors.

Let’s delve deeper to analyze the factors that make this upstream energy player an attractive investment option.

Cabot Oil & Gas is among the leading explorers and producers of natural gas with focus exclusively on domestic resources. In the United States, the company primarily operates in gas-rich Marcellus Shale, where more than 80% of capital budget has been allocated.

In the Marcellus Shale, the company has roughly 3,000 of undrilled prospective drilling locations, reflecting strong production prospects. In fact, through 2018, the company estimates production growth of 7% to 8%. Through 2019, Cabot expects production growth to be higher at 20-25%.

Since almost all of Cabot’s production comprises natural gas, the company is well placed to capitalize on the growing clean energy demand. Notably, the natural gas pricing scenario is getting healthier as the nation is gradually entering the winter season and there will be demand for natural gas for room heating purposes.  

Owing to these developments, we expect the company to record earnings growth of 107.6% and 58.9% through 2018 and 2019, respectively.

Other Stocks to Consider

Other prospective players in the energy space are Hess Corporation (HES - Free Report) , Enterprise Products Partners L.P. (EPD - Free Report) and Energen Corporation . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.    

Hess beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 230.5%.

Enterprise Products surpassed the Zacks Consensus Estimate in the prior four quarters, the average positive earnings surprise being 9.3%.

Energen has an average positive earnings surprise of 18.6% for the prior four quarters.

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