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4 Reasons Why You Should Invest in WPX Energy (WPX) Now

Zacks Equity Research
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Here's Why You Should Buy Danaher (DHR) Stock Right Now

Danaher (DHR) is poised to grow on the back of effective implementation of the Danaher Business System and strategic inorganic moves.

WPX Energy’s WPX earnings estimates have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has also moved up 950.0% and 38.9%, respectively, to 21 cents and 75 cents per share, in the same time frame.

WPX Energy, currently a Zacks Rank #2 (Buy) stock, engages in the production of oil, natural gas and natural gas liquids.
 
Let’s focus on the factors that make WPX Energy a stock to bet on for obtaining greater returns.

Focus on Oil: WPX Energy has transformed itself from a natural gas-focused company to an oil-focused one. The company has been able to do so through nearly $8 billion of transactions. At present, nearly 80% production of the company is liquid and rest natural gas. It was simply the opposite five years ago. The company is well poised to benefit from the ongoing improvement in crude oil prices.

VGM Score: The stock has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the 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.

Steady Capital Investment: WPX Energy continues to invest in a systematic manner to strengthen its operation in the Delaware and Williston Basins, and further increase its oil production. WPX Energy plans to invest in the range of $1,170-$1,220 million in drilling and completion activities in 2018.

Earnings Surprise Trend: WPX Energy delivered a positive earnings surprise in three out of the past four quarters, with an average beat of 24.52%.

All the above factors contributed to the strong performance of the company and the momentum is expected to continue over the long run. WPX Energy has returned 78.6% in the past 12 months, outperforming its industry’s rally of 19.7%.

 



Other Stocks to Consider

Other top-ranked stocks in the same industry include Denbury Resources Inc. DNR, Northern Oil and Gas, Inc. NOG, and Southwestern Energy Company SWN, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Denbury Resources, Northern Oil and Gas, and Southwestern Energy Company delivered positive earnings surprise of 30%, 12.5% and 12.5%, respectively, in their last reported quarter. Shares of Denbury Resources, Northern Oil and Gas, and Southwestern Energy have returned 98.2%, 46.3% and 43.0%, respectively, better than the industry’s growth of 1.6% over the past six months.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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Southwestern Energy Company (SWN) : Free Stock Analysis Report
 
Denbury Resources Inc. (DNR) : Free Stock Analysis Report
 
WPX Energy, Inc. (WPX) : Free Stock Analysis Report
 
Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report
 
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