CNX Resources Corporation’s CNX focus on low-cost production areas, planned capital expenditures and systematic hedges will support production despite fluctuating prices.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revision in Estimates
The Zacks Consensus Estimate for 2020 and 2021 earnings per share has been revised 81.8% and 125% upward in the past 90 days to 20 cents and 36 cents, respectively.
CNX Resources’ four-quarter positive earnings surprise is 111.5%, on average.
In the past 12-month period, the stock has gained 36.6% against the industry’s decline of 49.4%.
Debt to Capital
The firm has been steadily lowering the proportion of debt in the capital mix. Long-term debt at first quarter-end was $2,739 million, down from $2,873 million at the end of fourth-quarter 2019. Total debt to capital at the end of the quarter was 37.56%, lower than the industry average of 43.66%.
The company expects consolidated E&P capital expenditure to average $300 million annually over the 2022-2026 time period. It also expects to generate free cash flow of $500 million annually over the said time period. Strong free cash flow generation will help the company to meet debt obligation during this period, improve liquidity and continue with the share buyback program.
Other Stocks to Consider
Other top-ranked stocks in the Oil and Energy sector include Devon Energy Corporation DVN, Noble Energy Inc. NBL and Halliburton Company HAL, each carrying a Zacks Rank of 2.
Devon Energy, Noble Energy and Halliburton Company delivered average positive earnings surprise of 60.6%, 144.2% and 12.8%, respectively, in the last four quarters.
Long-term (three to five years) earnings growth for Devon Energy, Noble Energy and Halliburton Company is currently projected at 4.1%, 8.9% and 10.4%, respectively.
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Noble Energy Inc. (NBL) : Free Stock Analysis Report
Halliburton Company (HAL) : Free Stock Analysis Report
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
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