Why Hold Strategy is Apt for Callon Petroleum (CPE) Stock Now
Callon Petroleum Company CPE has witnessed upward earnings estimate revisions for its 2023 earnings in the past 30 days. The Zacks Consensus Estimate is pegged at $7.43 per share.
What’s Favoring the Stock?
West Texas Intermediate crude price, trading at more than $80 per barrel, is highly favorable for exploration and production activities.
Being a leading exploration and production company, Callon Petroleum is well-positioned to capitalize on handsome crude prices. The firm, carrying a Zacks Rank #3 (Hold), has a strong footprint in Permian, the most prolific basin in the United States, brightening its production outlook. In the top-tier Permian portfolio, Callon Petroleum has identified decade-long high-return drilling inventory, brightening its production outlook.
CPE is also focused on greenhouse gas emissions and lowering routine flaring. The new targets of Callon Petroleum also comprise strengthening its financials while deleveraging the balance sheet.
What’s Hurting it?
Compared with the 2.03% dividend yield of the composite stocks belonging to the industry, Callon Petroleum’s yield is 0%. Also, CPE is highly exposed to extreme volatility in commodity prices.
Stocks to Consider
Better-ranked players in the energy space include Evolution Petroleum Corporation EPM, Profire Energy, Inc. PFIE and Helix Energy Solutions Group, Inc. HLX. While Evolution Petroleum and Profire Energy carry a Zacks Rank #2 (Buy), Helix Energy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Profire Energy is mainly focused on the oil and gas industry’s upstream, midstream and downstream transmission segments. PFIE has boosted that its legacy business is doing extremely well, thanks to the resumption of maintenance work of exploration and production players.
Helix Energy is a leading player and is well-poised to grow in the favorable crude pricing environment since it primarily provides specialty services to the offshore energy industry.
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Helix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis Report
Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
Profire Energy, Inc. (PFIE) : Free Stock Analysis Report
Callon Petroleum Company (CPE) : Free Stock Analysis Report
