Shares of Concho Resources Inc. (CXO) hit a 52-week high of $148.19 on Jul 9. In fact, the Midland, TX-based independent oil and gas company has seen its stock price climb 36.93% since the beginning of the year. This price appreciation can be attributed to analysts’ higher earnings expectations given the company’s consistency in its earnings/cash flows, attractive fundamentals and a shareholder-friendly financial policy.
Yesterday’s closing price represents a strong one-year return of about 69.84%, against 20.89% clocked by the S&P 500 index. Average volume of shares traded over the last three months stands at approximately 1,085,470. The company’s projected long-term EPS growth is 21.34%.
The independent exploration and production company is engaged in the acquisition, finding, and development of oil and gas properties. The company’s operations are concentrated primarily in the Permian Basin of Southeast New Mexico and West Texas.
With holdings of around 605,000 net acres across the Permian Basin, 22,000 drilling locations and approximately 3 billion oil-equivalent barrels of resource potential, Concho Resources’ asset portfolio is primed for high production growth and peer-leading returns.
Concho Resources saw its profit for first-quarter 2014 (reported on May 12) rise year over year boosted by higher production and price realization. Adjusted earnings of $1.01 per share also topped the Zacks Consensus Estimate of 95 cents. The company delivered positive earnings surprises in the trailing four quarters, with an average surprise of 0.02%.
The firm has seen solid earnings estimate revisions over the past month, suggesting that analysts are becoming a bit more bullish on the firm’s prospects for both the short and long term. In fact, over the past month, second-quarter estimates have risen from 97 cents to 98 cents per share, while current year estimates have risen from $4.31 to $4.35 per share.
Concho Resources currently holds a Zacks Rank #3 (Hold).
Key Picks in the Sector
Stocks in the oil and gas sector with a favorable Zacks Rank include EQT Corporation (EQT), EXCO Resources Inc. (XCO) and Midstates Petroleum Company, Inc. (MPO). All three sport a Zacks Rank #1 (Strong Buy).
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