76.29 0.00 (0.00%)
After hours: 4:28PM EST
|Bid||75.81 x 1000|
|Ask||76.30 x 1000|
|Day's Range||75.92 - 78.01|
|52 Week Range||73.71 - 115.97|
|Beta (3Y Monthly)||0.79|
|PE Ratio (TTM)||11.37|
|Earnings Date||Nov 5, 2019|
|Forward Dividend & Yield||0.75 (0.96%)|
|1y Target Est||130.33|
Don’t count all beaten-down stocks out just yet. We mean the names that have seen share prices trend lower as a result of recent headwinds. While a decline in share prices is often interpreted as a signal to steer clear, Wall Street pros remind investors that this doesn’t always hold true. Buying stocks on recent weakness can be a solid investing strategy as it provides investors with the opportunity to snap up shares before they take off on an upward trajectory. However, pinpointing the perfect time to get onboard is no easy task.That’s why we recommend turning to TipRanks. The platform’s Stock Screener tool helped us zero in on 3 stocks that look like buying propositions given their recent shakiness. It gets even better as all the tickers have racked up considerable love from the Street in the last three months, enough to add up to a “Strong Buy” consensus rating.Let’s dive in. Etsy, Inc. (ETSY)It has been a tough quarter for the e-commerce company, to say the least. Nonetheless, some members of the Street believe that the 14% year-to-date drop represents a unique buying opportunity. While Etsy reported that gross merchandise sales and revenue for the quarter fell below the consensus estimates, it should be noted that this is likely as a result of the marketplace sales tax addition in 11 states and the slower-than-expected transition from shipping costs to item price. The company has also had to make up for a more condensed holiday window as well as accounting changes for Reverb, the online musical instrument marketplace it acquired back in August.Wedbush analyst Ygal Arounian highlights the fact that Etsy has yet to reap the benefits from its free shipping and ads segment. “We see a critical mass of new initiatives, highlighted by Etsy Ads and free shipping, that can drive stronger GMS growth and margin expansion over time. We particularly like the timing with both Etsy Ads and free shipping launching into the holiday season supported by Etsy’s brand marketing push, where it is seeing early signs of strong ROI on TV and Social,” he explained. As a result, Arounian argues that the pullback represents the ideal time to buy. Bearing this in mind, the analyst upgraded the rating to a Buy and set a $66 price target. At this target, Etsy shares could jump 62% over the next twelve months. (To watch Arounian’s track record, click here)Similarly, Wall Street is bullish when it comes to the e-commerce stock. With 13 Buy recommendations and 1 Hold assigned in the last three months, the message is clear: Etsy is a ‘Strong Buy’. To top it all off, its $67 average price target indicates 65% upside potential. (See Etsy stock analysis on TipRanks) Diamondback Energy, Inc. (FANG) Diamondback is an independent exploration and production (E&P) oil and gas company. Given its recent stumble, Wall Street wants to find out if FANG is gearing up for a recovery. FANG failed to impress investors with its performance in its most recent quarter, posting revenue that fell below estimates thanks to lower-than-expected realized oil, natural gas and NGL prices. Actual adjusted EPS/EBITDA also didn’t meet the Street’s expectations. Even so, Roth Capital analyst John White tells investors that FANG’s long-term growth narrative remains strong. “FANG expects realized prices to improve relative to the WTI crude oil price through the remainder of 2019 and 2020 as fixed differential contracts roll off and convert to FANG's commitments on the EPIC and Gray Oak pipelines or move to the current Midland market price,” he wrote in a note to clients.White adds that management’s full year 2020 average daily production guidance falls in-line with his forecasts. Taking all the above factors into consideration, the analyst decided to stay with the bulls. Along with the Buy rating, his $147 price target brings the upside potential to a whopping 91%. (To watch White’s track record, click here) All in all, other Wall Street analysts are betting on FANG. 14 Buys and 1 Hold received in the last three months add up to a ‘Strong Buy’ consensus. In addition, its $127 average price target suggests shares could climb 65% higher in the next twelve months. (See Diamondback Energy stock analysis on TipRanks) Agios Pharmaceuticals (AGIO)Agios is developing treatments for cancer and other rare diseases characterized by an identifiable genetic mutation. On the heels of this year's setback, BMO Capital’s George Farmer is coming to the biotech stock’s defense. Part of AGIO’s 26% year-to-date decline can be blamed on the delayed Tibsovo regulatory filing. The company announced on November 3 that the sNDA for its drug to treat advanced IDH1+ cholangiocarcinoma, a rare form of bile duct cancer, wouldn’t be filed before the end of the year like it previously planned. Instead, there will be a protocol-specified final OS (the length of time from the date of diagnosis or start of treatment that patients are still alive) analysis from the Phase 3 ClariIDHy trial before the filing takes place. Farmer argues that the FDA likely wants to be sure that Tibsovo doesn’t have a negative impact on OS before the agency reviews the sNDA. “In our view, results to date highly suggest that final data will ultimately support a neutral-to-positive impact of Tibsovo on overall survival in this Phase 3 trial,” he commented. He points out that AGIO also has other pipeline readouts slated for December that are capable of driving possible gains. To this end, Farmer advocates buying the dip in AGIO shares. On top of this, the analyst’s $45 price target leaves room for 31% upside potential. (To watch Farmer’s track record, click here) Based on the 7 Buys and 1 Hold published in the last three months, the consensus on Wall Street is that AGIO is a ‘Strong Buy’. It doesn’t hurt that its $60 average price target puts the potential twelve-month rise at 75%. (See Agios Pharmaceuticals stock analysis on TipRanks)
While the commodity pricing scenario continues to be challenging, both EOG Resources (EOG) and Occidental Petroleum (OXY) benefited from higher year-over-year production.
(Bloomberg Opinion) -- EOG Resources Inc. delivered something of an antidote to the venom that coursed through the fracker stocks Wednesday. Another darling of the sector, Diamondback Energy Inc., had sickened investors with a shock miss on production, adding to the growing chorus of voices announcing shale’s imminent demise (while oil prices also fell on trade fears). EOG’s combination of soundly beating production guidance with lower-than-expected spending, released Wednesday evening, was like a calming tumbler of whiskey at the end of a grueling day.Or grueling earnings season; EOG’s call marks the end of quarterly numbers for the biggest exploration and production numbers, and investors will mostly be glad to see the back of them. Chesapeake Energy Corp.’s slump below a buck a share was an extreme example — albeit with a certain fin-de-siècle frisson — but the problems of high leverage and too much spending remain endemic across the sector.EOG stands out for bucking that trend. And though it seems churlish to say, it could quite easily stand out even more.EOG has cracked the formula for pleasing a cohort of energy investors who are increasingly ornery (if they even bother to show up, that is): steady growth twinned with free cash flow and low leverage. Higher productivity, generated by in-house improvements rather than just squeezing suppliers, according to the company, means EOG has dropped its average rig-count target from the year from 40 to 36. Net debt to Ebitda has dropped from an already conservative 0.7 times a year ago to just 0.5 times at the end of the third quarter. Little wonder EOG’s benchmark 2023 bonds have rallied by more than 5% this year. That stands in marked contrast to the stock, which, even after Thursday morning’s 5% bump, is down 13%. Weak oil prices and broader revulsion to any company producing the stuff explains some of that, of course. But EOG has lagged a falling sector as its earnings multiple has dropped a couple of points.With others suffering — Diamondback’s multiple has slumped to less than 9 times — investors may be worried about EOG making a big acquisition, which hasn’t exactly been the path to prosperity in the sector. EOG went out of its way on Thursday morning to dispel such notions. Another risk that has surfaced of late, that a Democratic president might restrict fracking on federal lands, also prompted EOG to add a couple of slides to its presentation. Given the number of moving parts, not least exactly how much a president antipathetic to fracking could actually do, this seems a minimal risk for now.One way to address it all at a stroke would be to bump up EOG’s dividend substantially. The company has been raising payouts at a fair clip already, up more than 70% over the past two years. But the actual amounts are pretty small, with EOG paying out just $166 million in the third quarter, equivalent to just 8% of cash from operations and about 29% of free cash flow after capital expenditure. On a trailing four-quarter basis, the proportions are even lower.EOG’s stock now yields about 1.5%, and the company targets 2%, which would take it slightly above the S&P 500. That’s a significant level to beat given the E&P sector’s history of benchmarking by navel gazing, judging its own performance against the weaknesses of peers.Getting there wouldn’t actually cost that much: an extra $200 million or so, annualized. That would take payouts to 10% of cash flow from operations and 42% of free cash flow. EOG of course doesn’t want to set itself up for a potential cut down the road if oil prices drop, perhaps as early as next year. But low leverage and the wide cushion of free cash flow above and beyond dividend payments provide a significant buffer already.Moreover, EOG spent much of Thursday morning, as it does every quarter, playing up the low breakeven prices of its drilling inventory, providing resilience to the inevitable swings in commodity prices. A relatively small increase to the dividend bill would go a long way in backing that up, and closing the valuation gap.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The three major U.S. stock market indexes fell as hopes that the U.S. and China would soon sign a partial trade agreement dimmed.
(Bloomberg) -- Diamondback Energy Inc. said it’s fundamentally changing the way it forecasts future growth after becoming the latest Permian Basin shale producer to hit operational hurdles.The Midland, Texas-based explorer fell as much as 15% Wednesday after disclosing that its crude output over the third quarter fell more than 2% short of analyst estimates. Diamondback also warned it’ll miss oil-production forecasts next year despite plans to spend about the same amount of money on drilling.“When you stub your toe like we did in the third quarter, you’ve got to be able to adjust your future forecast to make sure that you can hit those numbers,” Chief Executive Officer Travis Stice said on a conference call Wednesday. The company is better accounting for interference from wells fracked by neighboring producers, Stice said. “These are operational problems, not reservoir problems,” he said.Analysts and investors are casting a critical eye on Permian oil producers after a spate of drilling mistakes. Diamondback’s woes come just three months after rival explorer Concho Resources Inc. lost about $5 billion in market value after crowding 23 wells too closely together.‘Wow, Were We Wrong’Analysts and investors had been cautious going into Diamondback’s third-quarter earnings. “We strongly believed sentiment was overly negative heading into the print,” said Scotiabank’s Matt Sorenson, one of more than three dozen analysts who has a buy recommendation on the stock. “Wow, were we wrong.“Diamondback, heralded by analysts as an industry leader, has no hold or sell ratings, according to data compiled by Bloomberg.Cowen analyst David Deckelbaum said the company’s third-quarter oil production miss was “widely expected” but worse than the bank’s estimate.Challenges with well spacing, rising gas-to-oil ratios and depressed commodity prices are hitting the shale industry hard, and many explorers have vowed to slow output growth in a bid to generate free cash flow. Occidental Petroleum Corp., Apache Corp., Cimarex Energy Co. and Pioneer Natural Resources Co. all are trimming budgets.Diamondback “did the old classic, and we say it yet once again, of over-promising and under-delivering,” Paul Sankey, an analyst at Mizuho Securities USA LLC, wrote in a note to clients.Diamondback’s total output was 65% crude oil during the third quarter, with the rest comprised of natural gas and gas byproducts. That was the company’s worst ratio since at least 2011, according to Bloomberg data, and a bane to investors because it means the company is more exposed to depressed gas markets. Diamondback now expects oil to make up 66% to 67% of its total production for the year, down from previous guidance of 68% to 70%.During the quarter, the company fetched, on average, $51.71 for each barrel of crude, $11.61 per barrel of natural gas liquids and just 62 cents for every million cubic feet of gas. Diamondback said it expects oil and gas prices to improve through the rest of the year and into next as new pipelines enter service.BuybacksStice cited the company’s sale of an asset in a Permian region known as the Central Basin Platform for much of the drop in crude production. Excluding the impact of that deal, oil output actually rose, he said.Diamondback also said it bought back almost 3 million shares for about $296 million in the quarter, as part of a program to repurchase $2 billion of stock by the end of next year.“The company intends to purchase stock under the repurchase program opportunistically with funds from cash generated from operations and liquidity events such as the sale of assets,” the driller said in a statement, adding that the program can be stopped or suspended at any time.Diamondback shares fell 13% at to $78.53 at 11:06 a.m. in New York.\--With assistance from Michael Bellusci.To contact the reporter on this story: Rachel Adams-Heard in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Christine Buurma, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Diamondback (FANG) delivered earnings and revenue surprises of -14.04% and -7.20%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Shares of Diamondback Energy Inc. fell 12% in the extended session Tuesday after the oil and gas company reported third-quarter results below Wall Street expectations and said its oil production declined in the quarter due to asset sales earlier in the year. Diamondback said it earned $368 million, or $2.26 a share, in the quarter, compared with $157 million, or $1.59 a share, in the year-ago quarter. Adjusted for one-time items, the company earned $239 million, or $1.47 a share, compared with $1.67 a share a year ago. Revenue rose to $975 million from $537 million a year ago. Analysts polled by FactSet had expected adjusted earnings of $1.70 a share on sales of $1.05 billion. "After growing significantly during the first two quarters of the year, Diamondback's oil production declined in the third quarter due to the sale of our Central Basin Platform assets effective July 1, 2019, which removed ~5,800 barrels per day of low-margin oil production from our asset base," Diamondback Chief Executive Travis Stice said in a statement.
MIDLAND, Texas, Nov. 05, 2019 -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the third quarter.
MIDLAND, Texas, Nov. 05, 2019 -- Rattler Midstream LP (NASDAQ: RTLR) (“Rattler” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”),.
Are you ready for another round of earnings reports? We’re looking at three Strong Buy stocks which are reporting on Tuesday, and investors should be excited. The Q3 earnings season has been better than was anticipated, with 60% of S&P listed companies beating forecasts on revenues, and 74% beating on EPS. It’s a good end to a rough summer in the markets.We found these top stocks through TipRanks’ Stock Screener tool, by setting the filters to sort for ‘strong buy’ ratings, any upside, and dividend payouts. The results are stocks that investors can expect to show solid returns in the coming months.Diamondback Energy (FANG)Based in Texas, Diamondback Energy engages in ‘hydrocarbon exploration,’ or to put it layman’s terms, oil drilling. Diamondback operates in the Permian Basin, of the richest oil regions in Texas and a driver of the fracking boom in the oil and gas industry that has bumped the US to the 1 spot as the world’s largest oil producer. The company is a mid-size player in the industry, with a market-cap of $14 billion, annual revenues exceeding $2.18 billion, and net profits in the range of $940 million – based on a daily production greater than 130,000 barrels of oil equivalent.A product that the modern world cannot do without, along with smart management, has kept FANG profitable despite a 6% drop in share value this year. The company makes up for the lack of share appreciation with a modest dividend of 0.8% yield, or roughly half the sector average. The quarterly payout is 4.75 cents per share.Looking ahead, the markets expect to see FANG report an earnings increase year-over-year, along with higher quarterly revenues Diamondback’s EPS has been rising steadily since Q1 of this year, although the company did miss the forecast last quarter by 2%. In the last eight quarters, Diamondback has beaten the earnings forecasts five times.Putting this into raw numbers, analysts expect FANG to show $1.73 in the Q3 report, based on $1.05 billion in revenues. This represents an earnings beat of 3.6%, and a revenue beat of an impressive 95.3%.Speaking of analysts, Roth Capital’s John White sees reason for optimism in FANG’s low debt load. As he points out, the company operates with low leverage, allowing it to focus on drilling activities and production. White writes, “Our rationale is that FANG does not receive proper credit for its lower leverage… In our view FANG is one of the premier Permian focused companies as it has displayed through its strong record of successful drilling and completion results over a multi-year period and capital return initiatives.”White rates FANG a Buy along with $147 price target, which implies an upside potential of about 60% for the stock. (To watch White's track record, click here)Michael Glick, of JPMorgan, is also bullish on this oil producer. He points out the company’s expanding oil drilling activity, high free cash flow, and acquisitions of new drilling exploration areas. In a report dated October 9, Glick writes, “Diamondback is uniquely positioned in that it should have the highest growth rate among peers while delivering industry leading returns. We model the company growing oil ~16% in 2020Ey/y at a ~5.9% post-dividend FCF yield, and free cash flow continues to expand, particularly in the out-years. Late 2018 acquisitions doubled the size of the company…” Like White, Glick sets a high price target on this stock: $139, suggesting an upside of 60%.All in all, FANG’s Strong Buy consensus rating is unanimous – 15 analysts have given this stock an up-check. The average price target is $138, which indicates a 53% upside from the share price of $86. (See Diamondback stock analysis on TipRanks)Microchip Technologies (MCHP)Even at $5.35 billion in annual revenues, Microchip is considered a second-tier player in the semiconductor chip industry. The top-ten companies all exceed $12 billion annual revenues; add in the next five, and annual revenues are still above $8 billion. But just because it’s smaller than the competition doesn’t mean MCHP isn’t high-end; the company is a leader in its segment, producing microcontrollers, mixed-signal, and Flash-IP integrated circuits, among other products. Based in Arizona, the Microchip has three wafer fabrication facilities in the Western US, and assembly/test facilities in Thailand and the Philippines.The company will report earnings for Q2 fiscal 2020 tomorrow. Microchip is still feeling the effects of the 2H18 slowdown, and analysts expect that the company’s results will show significant declines from one year ago. Conventional wisdom says the company will report $1.43 EPS based on quarterly revenues of $1.35 billion. This is a 21% earnings decline and a 10% revenue drop. On the positive side, just meeting the expectation will mean a 14% EPS sequential gain – and MCHP has a history of beating the earnings forecasts, having done so in 7 of the last 8 quarters.So, Microchip is well positioned in its industry, occupying a solid position in a clear niche. This, plus the company’s proven track record of product success has B. Riley’s 5-star analyst Craig Ellis reiterating his Buy rating along with a $120 price target. (To watch Ellis' track record, click here)The analyst says of the stock, “We expect another quarter of robust execution validate our thesis. We believe the company’s operational excellence will become even more visible when macro pressures subside, or at a minimum when channel inventory reduction pressure eases from acute to a more neutral factor, as we believe is starting to happen.”Wall Street is on the same page. This ‘Strong Buy’ stock received 8 Buy ratings vs 1 Hold over the last three months. Its $108 average price target suggests about 8% upside potential from current levels. (See Microchip stock analysis on TipRanks)Fidelity National Information Services (FIS)The last stock on our list today is FIS, Fidelity National Information Services. This Florida-based company is a major provider of technology and outsourcing to the financial services industry. FIS brings in over $12 billion in annual revenue, and realized more than $825 million annual net income. The company has strongly outperformed the broader markets this year, gaining over 30% in so far in calendar 2019.The fintech sector is a known money-maker, and FIS is widely expected to report a year-over-year gain for Q3. Analysts are forecasting an EPS of $1.35, or 1.5% higher than one year ago. Revenues are also expected to show a yearly gain, of 34%. Market watchers expect the company to report $2.8 billion in revenues for the quarter. Over the last month, analysts have increased their EPS forecast by a modest 0.11%; this is taken a signal that the company is likely to meet expectations.Major research firms – and some 5-star analysts – are showing FIS some love in the lead-up to the earnings release. Writing from Canaccord, Joseph Vafi sets a $150 price target on the stock, writing of the stock’s near- to mid-term prospects, “We think the new FIS, fueled by material cost and revenue synergies… can achieve enough accretion to drive earnings growth towards twenty percent in a couple of years… realistic synergies could drive mid-teens EPS growth in 2021 and 2022; but we believe a more optimistic scenario is achievable, driving EPS growth closer to 20%. Of course, strong cash flow conversion here could also drive additional shareholder initiatives, in boosted buybacks and dividends.” Vafi’s price target suggests an upside of 12.5%. (To watch Vafi's track record, click here)Wolfe Research analyst Darrin Peller is also optimistic about FIS’ profit outlook. He writes, “The company sales/backlog up >30%/7% in 2Q and WP/VNTV’s cross-sell wins now totaling 56 should enable a continuation of its organic growth story.” He added, “…we model organic, constant currency growth of 5.5%. That said, we see our estimate as conservative given 2Q’s pro-forma growth of nearly 6%...” Like Vafi, Peller gives FIS a $150 price target.FIS has built its Strong Buy consensus rating on solid performance which has attracted 14 buys in the last three months, as opposed to only 4 holds. This stock is selling for $133, so the $152 average price target implies an upside of 16%. (See FIS stock analysis on TipRanks)
While substantial output growth is expected to have buoyed Diamondback's (FANG) third-quarter 2019 earnings, weaker year-over-year commodity prices might have dented overall results.
MIDLAND, Texas, Oct. 29, 2019 -- Viper Energy Partners LP (NASDAQ:VNOM) ("Viper" or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) ("Diamondback"),.
Diamondback (FANG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
If you're looking for stocks to buy based on the earnings reports of companies who have already reported in the third quarter, you can already write off Twitter (NYSE:TWTR) and Boeing (NYSE:BA). FactSet Research (NYSE:FDS) analyst John Butters projects that the S&P 500 earnings in the third quarter will fall by 4.7%, the third consecutive year-over-year earnings decline from the index, and the first time since Q2 2016. While Twitter was able to grow its monetizable daily active users in the quarter, it faces several headwinds that could persist into 2020. As for Boeing, the giant elephant in the room remains the 737 Max, which the company expects will get regulatory approval to return to service by the end of 2019, but has caused major declines in the company's revenue and profits. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 AI Stocks to Buy to Profit from the Recent Tech Correction Although both Twitter and Boeing's earnings reports had holes so big you could drive a truck through them, it doesn't necessarily mean that you shouldn't consider owning their stocks for the long haul. Here are 10 stocks to buy regardless of Q3 earnings. Stocks to Buy: Diamondback Energy (FANG)Source: Pavel Kapysh / Shutterstock.com Although I'm not a big fan of energy stocks, I've tried to include at least one stock from several different industries. That's why Diamondback Energy (NYSE:FANG) made the cut. If you invested $10,000 in FANG five years ago, today you'd have $13,094.90. That sounds bad until you consider that the same investment in its oil & gas exploration and production peers would have resulted in a loss of $4,406.52 over the same period. The grass is always greener.At the beginning of October, Diamondback's COO, Michael Hollis abruptly resigned from the company after eight years, the last four as head of operations. Before joining Diamondback, Hollis worked for Chesapeake Energy (NYSE:CHK).While Hollis was wise to leave Chesapeake when he did -- its stock was above $20, 10 times where it's currently trading -- no one is irreplaceable. Down 15% year-to-date including dividends through Oct. 28, FANG provides great value despite lower oil prices. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com I asked myself in May: "Can Nike (NYSE:NKE) hit $185 in the next five years?"My answer: "If I owned Nike stock, I'd be concerned that Lululemon (NASDAQ:LULU) will soon generate more revenue from the men's market as a percentage of its overall sales than NKE does from the women's market," I wrote May 23. Don't get me wrong. I like Nike and what it has been able to do with its Swoosh logo. However, it is Lululemon that made wearing sportswear an everyday event. Not Nike. In August 2016, I stated that Lululemon stock would be one of the best performing S&P 500 stocks over the next 10 years. To date, it's up 40% compared to 11.5% for the S&P 500. For me, it all came down to the men's market. If it could deliver growth in this area, it would have no trouble being one of the index's shining stars. Bloomberg Intelligence recently named LULU one of the 50 companies to watch in 2020 out of 2,000 possible choices. "Innovation is driving results, as is Lululemon's 'power of three' push focusing on men's, digital, and international businesses," stated Bloomberg's Poonam Goyal Oct. 22. * 7 Top-Notch REITs to Buy for Income CEO Calvin McDonald is just getting started. Nike (NKE)Source: TY Lim / Shutterstock.com While Lululemon has done a great job taking the battle to its bigger opponent, there's no question that Nike still has what it takes to ring up sales on the register. On Oct. 22, Nike announced that long-time CEO Mark Parker would move upstairs on Jan. 13 into the Executive Chairman's role after 13 years as chief executive. "To be clear, I'm not going anywhere," Parker said. "I'm not sick. There are no issues I'm not sharing. I strongly believe the best way for us to evolve and grow as a company is to bring in a phenomenal talent to join our team who has long been part of the Nike family."Between the corporate culture issues that have plagued the company in recent years combined with recent allegations that Parker condoned doping by Nike athletes, it was time for him to move aside. Parker is a youthful 64 years of age, but that's too old to be hanging around the gym. His successor, John Donahoe, at 59, isn't much younger. However, five years is an eternity in the sports business.Donahoe and Parker (it's not as if he won't be around the Nike campus) can work to find a real successor, someone in their mid-to-late 40s, who understands both the sports business and brick and mortar retail. Berkshire Hathaway (BRK.A, BRK.B)Source: Jonathan Weiss / Shutterstock.com When I read articles about investment managers selling their stakes in Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) because Warren Buffett's lost his touch, I just chuckle. The Motley Fool's Sean Williams recently discussed how Wedgewood Partners CIO David Rolfe sold his firm's $123-million position in Warren Buffett's company in the third quarter, expressing dissatisfaction with some of the Oracle of Omaha's moves. "Further, the efficacy of putting this cash pile to work (plus +$25 billion in annual operating cash flows in Omaha) will be paramount if Berkshire Hathaway is to once again regain their former status as a meaningful grower over just baseline U.S. GDP growth," Rolfe's Q3 letter to shareholders stated. With all due respect to Mr. Rolfe, I'd like to see how he would do investing more than $700 billion in total assets. It's a lot easier to invest $2 billion than it is $700 billion. * 7 Safe Stocks to Buy and Hold Through 2020 Listen, I don't think Warren Buffett's perfect either. In June, I listed off seven ways to make Berkshire Hathaway stock more attractive. However, if you hold BRK until it's liquidated once Buffett's gone, I'm sure you'll make out just fine. The company continues to be the biggest fund on the NYSE that's trading at a discount. SVB Financial (SIVB)Source: Shutterstock SVB Financial (NASDAQ:SIVB), known as the bank for innovators and entrepreneurs, hasn't had an easy time of it so far in 2019. SIVB has crossed above $220 on four occasions this year, only to retreat back to $210 or lower each time. A year ago in August, SIVB stock was trading above $325. I should know. In September 2018, I recommended SIVB as one of seven bank stocks to own for the long haul. It's been on a downhill slide ever since. And it doesn't look like things are going to get much better in the near-term.On Oct. 24, after the markets closed, SIVB announced its Q3 2019 earnings. As expected, they weren't as good as the second quarter, but on a per-share basis they were better than a year earlier -- earnings per share were $5.15 a share, five cents higher than in the third quarter last year -- suggesting that despite some short-term interest rate headwinds, the overall banking business is still in very good shape. It continues to be my favorite U.S. bank. Intuitive Surgical (ISRG)Source: michelmond / Shutterstock.com Intuitive Surgical (NASDAQ:ISRG) is the maker of da Vinci robotic surgical systems. On Oct. 18, it reported healthy Q3 2019 results that saw revenues increase 23% to $1.13 billion with adjusted earnings of $3.43 a share, 46 cents higher than the consensus estimate and 21% higher than a year earlier. Some analysts aren't so sure about the company's ability to grow da Vinci sales. "On the one hand, we admire the company for having created a new growth vertical in medtech and demonstrating technology leadership," Evercore ISI analyst Vijay Kumar said in a note to clients. "On the other hand, we think revenues are likely to decelerate from the stellar 2019 levels."If there's a stock to buy on weakness, ISRG would be it. In 2016, I stated that ISRG's cash cushion of $4.6 billion would insulate it from any cost-cutting from hospitals under the then newly-elected Trump administration. * 7 Stocks to Buy With 100% Upside Potential At the end of September it had $5.4 billion in cash, cash equivalents, and long-term investments. Just as I said in 2016, ISRG is going to be just fine no matter the economic or industry headwinds. Cummins (CMI)Source: Jon Olav Eikenes Via FlickrJust around the corner where I live in Halifax, Nova Scotia is a Canadian military base. During Tropical Storm Dorian, when almost all of the province lost power, the base's Cummins (NYSE:CMI) generator was humming away, helping the military assist the provincial government and hydro authorities in a province-wide cleanup. I couldn't tell you which Cummins unit is installed at the base, but it was impressive to see the buzz of activity while the rest of us sat around without power twiddling our thumbs. Although the company expects its sales for fiscal 2019 to be flat to a year ago at $23.8 billion, and at the low end of its previous guidance, EBITDA should be around $3.9 billion or 16.5% of its overall sales. That's 190 basis points than a year earlier. Trading at just 12.7x its forward P/E and yielding a reasonably healthy 3%, CMI stock is definitely one of those stocks you can count on over the long haul. Rollins (ROL)Source: Bull- Doser via Wikimedia (Modified)In May 2016, I put together a retirement portfolio of 10 stocks that I thought would continue to outperform the S&P 500. One of those stocks was Rollins (NYSE:ROL), the champion of pest control. The investment thesis for Rollins is simple: it generates tremendous recurring revenue while retaining a majority of its customers over the long haul. There's nothing complex about the business, but the Rollins family, who control more than 50% of its stock, are such good operators that they make it look easy. Over the past 15 years, Rollins stock has generated an annualized total return of 18.2%, almost double the entire U.S. market. * 10 Hot Pot Stocks to Buy Rollins might not be an elegant business, but its services aren't something you want to put off for too long, providing it with a relatively captive audience. Alphabet (GOOGL)Source: rvlsoft / Shutterstock.com I'd been thinking about choosing Amazon (NASDAQ:AMZN) over Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), but a recent article I wrote about "My Love-Hate Relationship With Amazon Stock" has me rethinking my previously held opinion that Jeff Bezos could do no wrong. As a result, I've passed the baton to the folks at Alphabet whose penchant for generating oodles of free cash flow -- for every dollar of sales, it has 15 cents of free cash flow -- combined with just $4.1 billion in long-term debt, makes it an excellent candidate to buy back lots of its stock. When it comes to the FAANG stocks these days, my preference leans toward Alphabet and Apple (NASDAQ:AAPL) and away from Facebook (NASDAQ:FB), Amazon, and Netflix (NASDAQ:NFLX). In September, I suggested that the company's "other bets," which includes Waymo, the company's self-driving business, is the key to its future success."A business that makes or saves people time and money will always be in demand in the 24/7, 365-day world in which we live," I wrote Sept. 9. "By continuing to invest in its other bets, it's got a much better chance of developing the next great idea that will change the world. And that, more than anything, will influence the GOOGL stock price."In the meantime enjoy the ride. Apple (AAPL)Source: mama_mia / Shutterstock.com In the previous slide about Berkshire Hathaway, I mention some of investment manager David Rolfe's criticisms of Warren Buffett's investments. Kraft Heinz (NASDAQ:KHC) is a big one, something I've also been critical of in past articles.However, if you're going to point out his failures, you also have to point out his successes. Of all the investments Buffett has made in publicly-traded stocks in recent years, the decision to load up on Apple has likely been his best. In January, I wrote about the seven reasons Buffett's bet on Apple is a good one. Ever since Tim Cook took over the CEO's job in August 2011, there have been plenty of critics about the way he pivoted from hardware and iPhones to services such as Apple TV+, Apple Arcade, Apple Music, iTunes, etc. Unlike Buffett's bet on IBM (NYSE:IBM), Buffett can see that Apple's runway to growth is still alive and well. It might not sell as many iPhones in the future, but it doesn't have to under its rejigged business model.He might not be Steve Jobs, but this Tim Cook version is still pretty darn good.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 AI Stocks to Buy to Profit from the Recent Tech Correction * 5 IPO Stocks With Lockup Expiration Dates Around the Corner * 3 Clean Energy ETFs for a Brighter Future The post 10 Stocks to Buy Regardless of Q3 Earnings appeared first on InvestorPlace.
Is Diamondback Energy, Inc. (NASDAQ:FANG) a good dividend stock? How can we tell? Dividend paying companies with...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Diamondback Energy, Inc. New York, October 24, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Diamondback Energy, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Longtime investors know the stock market is forward-looking. That means a stock’s share price is more a reflection of what investors collectively think the company will do in the future than what it did ...
Oil prices bottomed out last December and rose steadily through the first four months of this year. Since then, however, the oil markets have slipped and been unable to regain traction. On the international market, Brent crude is down 19.6% from its April 23 peak, while the US benchmark WTI has slipped 20.8%.J.P. Morgan’s Dubravko Lakos-Bujas, chief U.S. equity strategist, sees a possible near-term turnaround in the oil markets, however. He writes, “We believe favorable technicals, improving fundamentals with stabilizing business cycle, and ongoing geopolitical tensions in the Middle East could help redirect flows into this universally hated and cheap sector.” In short, the industry has a solid business foundation, while political instability may act to push prices back up. He adds three additional factors that point toward a bullish future for oil. First, the low prices have pushed oil stocks to discount valuations; second, many oil companies are working to lure investors with increased dividends; and third, the US economy shows signs of picking up in the next three to six months.Based on this bullish thesis, we’ve used TipRanks’ Stock Screener to pick out three energy stocks with Strong Buy consensus ratings. All three have weathered the low prices and are ready take advantage of any upturn in the oil markets.Cabot Oil & Gas Corporation (COG)We’ll start with Cabot, the smallest of today’s stock picks. The company has a market cap of $7.4 billion, and is focused on the Marcellus shale formation of the Appalachian region. Cabot controls 11.6 trillion cubic feet of proven natural gas reserves in northeast Pennsylvania. For a mid-size company, this is a large asset in a strategic location of a high-demand area. Cabot has drilled over 650 wells in the last 10 years.Natural gas is a prime fuel for electrical generation as well as home heating and cooking, so Cabot’s product has no want of customers. The company reported 2018 net income of $100 million on revenues of $1.76 billion. While overhead in the gas drilling and fracking business is high, Cabot has sufficient cash flow to maintain a 9-cent per quarter dividend payment, which annualizes at 36 cents and a 2.05% yield. The company has been raising that dividend steadily over the past two years.Cabot’s solid position in the US natural gas industry earned it an upgrade from 5-star Wolfe Research analyst Josh Silverstein. Silverstein changed his stance from Neutral to Buy, writing, “We’ve been on the sidelines at COG looking for a better entry point… With the stock now -20% over the last three months…, we see an improved risk/reward and opportunity to own one of the best low-cost asset bases…” In upgrading his stance on the stock, Silverstein maintained his $27 price target, indicating confidence in a 53% upside to the shares.Overall, COG’s Strong Buy consensus rating comes from 8 reviews, including 6 "buys" and 2 "holds," given in the past three months. The stock is selling for a low $17.59, but the $23.14 average price target suggests a potential of nearly 30% upside. (See Cabot Oil & Gas stock analysis on TipRanks)Diamondback Energy (FANG)Diamondback is a major producer of crude oil, natural gas, and natural gas liquids, all in the Permian Basin of West Texas. Diamondback has over 992 million barrels of proven reserves available for recovering in this rich oil basin, of which 63% is petroleum and the remainder split between various forms of natural gas products. These reserves justify the company’s $13.7 billion market cap.Investor like a strong bottom line, and FANG delivers that, too. The company reported 2018 income of $944 million, based on total revenues of $2.18 billion. While Diamondback just missed earnings expectations in the last quarter, the company’s 2019 EPS has been steadily growing. FANG shares pay out a modest dividend, annualized at 75 cents per share, or a 0.89% yield.With a background like that, it’s no wonder that FANG has attracted rave reviews from the analysts. Neal Dingmann, of SunTrust Robinson, writes of the stock, “We believe the overall 2019 plan (production/CAPEX) remains on track resulting in one of the best growth/returns/FCF stories in the E&P space in our opinion.” His $145 price target implies an upside of 72% for FANG. (To watch Dingmann's track record, click here)J.P. Morgan’s Michael Glick is also upbeat on FANG, saying, “Following the recent pullback in the stock, we model a ~6% FCF yield after dividends in 2020E and have the stock trading ~4.3x EV/EBITDA. In our view, this is one of the more attractive valuations in the sector.” He gives this stock a price target of $139, suggesting room for a 65% upside.All in all, FANG’s analyst consensus rating is a unanimous Strong Buy, with 12 analysts giving it the thumbs up in the last three months. Shares sell for $83, and the average price target is $139; this indicates a potential upside of 65%. (See Diamondback Energy stock analysis on TipRanks)EOG Resources (EOG)Our final stock today is also our largest. EOG has a market cap of $39.6 billion, and has operations in the same Marcellus shale formation as Cabot above. EOG is more spread out, however, with active wells and exploration in the Rocky Mountains, Texas, British Columbia, the island of Trinidad, and the Sichuan Basin of central China. The bulk of the company’s operations, however, are centered in the Permian Basin of Texas. EOG’s proven reserves are given as 2,928 million barrels of oil equivalent.A widespread energy producer with active operations in all of the United States’ most productive oil regions can be expected to bring in a high income, and investors will not be disappointed by EOG’s performance. The company’s 2018 revenues were reported at $17.275 billion and yielded a net income of $3.42 billion. These numbers were based on an annualized daily output of 719 thousand barrels of oil equivalent. EOG has used its strong cash flow to support an annualized dividend of $1.15 per share. The payout ratio, a measure of the dividend compared to the annual EPS, is a healthy 20%.Evercore analyst Stephen Richardson has taken note of EOG, reiterating his Buy rating on the stock and set a bullish price target of $145. He said, “A combination of early (read low cost) entrance into oil basins with the technical prowess to consistently drill and complete some of the best wells industry wide is a differentiator. EOG is perhaps the only upstream entity in a position to bolster ROCE by deploying, not rationing capital which is unique.” Richardson’s price target implies a hefty 113% upside to this stock.Overall, TipRanks’ data shows an overwhelmingly bullish camp backing this oil company. The ‘Strong Buy’ stock has amassed 10 "buy" ratings in the last three months, with just two analysts playing it safe with a "hold." The 12-month average price target stands tall at $102.18, marking nearly 50% in return potential for the stock. (See EOG stock analysis on TipRanks)
Diamondback Energy is under pressure after the U.S. energy company reported weak Q3 earnings and revenue. Yahoo Finance’s Scott Gamm breaks down the stock's price action on The Final Round.