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Here's Why You Should Add TOTAL (TOT) to Your Portfolio

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Earnings estimates for TOTAL S.A. have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 1.5% and 0.8% during the said period, respectively.

The company is among the top five publicly traded global integrated oil and gas companies. It has operations in more than 130 countries across five continents.

Let’s focus on the factors that make the stockan appropriate pick at the moment.

Zacks Rank & VGM Score

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has an impressive 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 are the best investment options.

Long-Term Growth & Price Performance

The company’s long-term (3 to 5 years) earnings growth is pegged at 9.70%.

Shares of the company have outperformed the industry. In the past 24 months, shares of TOTAL have gained 10.9% compared with the industry’s rise of 9.5%.

Earnings Estimates Revision

TOTAL’s earnings estimates for 2019 and 2020 indicate rise of 4.75% and 10.93% on a year-over-year basis to $5.29 and $5.86 per share, respectively.

Strategic Acquisitions & Agreements

The company has one of the best production growth profiles among other oil majors. The company continues to undertake strategic acquisitions and agreements with existing operators in high potential areas. Also, TOTAL divests assets that are not in sync with its long-term objectives.

The company acquired assets worth $8,314 million. It disposed assets valued at $5,172 million in 2018. Moreover, it acquired interests in Guyana and Mediterranean Sea, offshore Lebanon. TOTAL has acquired offshore assets from Cobalt in the Gulf of Mexico. These acquisitions continue to strengthen the company’s position on a global scale.

Other Key Picks

Some other top-rankedcompanies in the same sector Antero Resources Corporation (AR - Free Report) , Occidental Petroleum Corporation (OXY - Free Report) and Apache Corporation (APA - Free Report) . Antero Resources sports Zacks Rank #1, while Occidental Petroleum and Apache holds Zacks Rank #2.

Antero Resources’ long-term earnings growth is pegged at 20%. The Zacks Consensus Estimate for 2019 earnings for the company moved up 243.4% to 79 cents.

Occidental Petroleum’s long-term earnings growth is pegged at 14.6%. The Zacks Consensus Estimate for 2019 earnings for the company moved up 14.2% to $3.69 per share.

Apache’ long-term earnings growth is pegged at 7%. The Zacks Consensus Estimate for 2019 earnings for the company moved up 167.7% to 83 cents.

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