Here's Why California (CRC) Stock is a Must Buy Right Now
We are upbeat about California Resources Corporation’s CRC prospects and believe it is a promising pick right now.
The company currently carries a Zacks Rank #2 (Buy) and a VGM Score of A. 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 take a look at the other factors that make this firm an attractive bet.
CaliforniaResources is the leading explorer and producer of oil and natural gas in California. Notably, the company carries out operations in prolific resources across the state. Through the first nine months of 2018, the company drilled roughly 151 wells that yield 131,000 barrels of oil equivalent (BoE) per day.
Of the total $550-million capital spending through the first nine month of 2018, roughly $467 million has been internally generated by the company. This reflects California Resources’ strong and reliable operations. In fact, the company managed to boost its adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) to $803 million from $548 million.
Moreover, the current weak crude pricing scenario will not be a drag on California Resources given the company’s plan to hedge 50% of oil production in 2019.
California Resources Corporation Price and Consensus
California Resources Corporation Price and Consensus | California Resources Corporation Quote
Other Stocks to Consider
Other prospective players in the energy space are TC PipeLines, LP TCP, Eni SpA E and Enterprise Products Partners L.P. EPD. All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.
Eni managed to beat the Zacks Consensus Estimate in three of the past four quarters.
Enterprise Products surpassed the Zacks Consensus Estimate in the last four quarters, the average positive earnings surprise being 9.3%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TC PipeLines, LP (TCP) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report
California Resources Corporation (CRC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
