OilStockReport
14 years ago
CPX is a top buy.
Complete Production Services (CPX) -
While Marathon Oil may be an integrated with upside, Complete Production may be the oil company with the most upside overall.
CPX has dropped off its highs and settled at a great support line above its moving averages and an upward channel bottom line. This movement comes as CPX is about to increase EPS from -0.04 to 0.50 and grow revenue nearly 60%. Despite a 26 P/E ratio, a swing to profits in Q1 and gains in 2011 will drop the company’s future P/E to below 10.
Therefore, that means that the price of the stock definitely needs to start to make up for a significant gain in earnings. Its competitors like Key Energy (KEY), Basic Energy (BAS) and Baker Hughes (BHI) all have future P/E ratios well above this level, and CPX looks like it will soon be far outside the normal levels for oil/gas drilling.
Exploration companies are seeing significant increases in demand at these levels because higher prices mean oil companies want to put more supply on the market to take advantage of the higher price. CPX is well positioned not only to see gains in Q1, but throughout the year. They are estimated to increase revenue over 35% and more than double EPS for the full year.
This is a tremendous mid-cap value for a company with low shares and great growth prospects.
Burkhard
14 years ago
Had my hands on some energy shares but have sold and moved on. My big take so far this year is from tech stocks, software and programming mainly. Oil and gas stocks require more attention than I'd like to devote. Plus options are just not my game either. Same with penny stocks, too much of a gamble, have a handful I'm currently holding/stuck with and hate em'.
GLTY, nice sharing info.
Peace,
Sieg
MWM
16 years ago
Oil service companies rise on upgrade
Goldman upgrades oil services sector to "Attractive," shares jump
Tuesday April 21, 2009, 12:10 pm EDT
NEW YORK (AP) -- Shares of oil service companies advanced on Tuesday after an analyst upgraded the sector on an expected rebound in commodity prices and a belief that uncertainty in oilfield services stocks will decline.
Goldman Sachs analyst Daniel Boyd said his stock preference is shifting more toward more volatile stocks which have reached attractive prices and away from more defensive stocks.
Boyd upgraded Weatherford International Inc. and Halliburton Corp. to "Conviction Buy" from "Neutral." He said Halliburton is trading at a discount compared to its peers, which he believes is unjustified considering its market share and solid balance sheet.
Shares of Weatherford jumped $1.28, or 9 percent, to $15.45. Halliburton shares rose $1.01, or 5.4 percent, to $19.80.
Land drillers Nabors Industries Ltd. and Patterson-UTI Energy Inc. also received upgrades from Boyd, to "Buy" from "Neutral," based on expectations that the gas rig count will trough in the second quarter and pick up materially in 2010. Boyd said he believes natural gas production supply and demand is improving from extreme lows and that returns on these stocks could be very attractive. Even though land drillers have rallied in recent weeks, Boyd insisted that there is still meaningful upside in these names. Since the beginning of March, shares of both Nabors and Patterson-UTI have rebounded more than 50 percent.
On Tuesday, shares of Nabors gained 92 cents, or 6.8 percent, to $14.32. Patterson-UTI shares climbed 97 cents, or 8.3 percent, to $12.94.
Boyd upgraded Ensco International Inc. to "Buy" from "Neutral," saying that he prefers offshore drillers with jackup rigs and deep water fleet. Boyd expects companies with a large jackup rig count to outperform in the beginning of a sector rebound. He also favors Ensco's low cost structure and strong balance sheet.
Shares of Ensco jumped $1.42, or 4.8 percent, to $30.96.
Boyd removed both Schlumberger and Transocean Ltd. from its "Conviction Buy" list, giving both stocks a "Neutral" rating. He praised Schlumberger's international exposure, strong relationships with national oil companies and solid balance sheet, but believes the stock has risen too far, citing concerns about the company's operations in Russia and exploration spending levels.
"Schlumberger receives nearly 7 percent of its revenue from Russia, which now appears to be one of the worst oil service markets in the world, on par with the US," Boyd said.
Boyd expects the company's 2010 profit to fall by 20 percent.
Shares of Schlumberger rose $1.40, or 3.2 percent, to $45.50. Transocean shares gained 79 cents to $64.92.
Other oil services stocks Boyd downgraded include Noble Corp. to "Buy" from "Conviction Buy," Diamond Offshore Drilling Inc. to "Sell" from "Buy" and Pride International Inc. to "Neutral from "Buy."
Noble shares climbed 99 cents, or 4 percent, to $26.57. Shares of Diamond Offshore Drilling gained 77 cents to $70.11. Pride International shares rose 91 cents, or 4.2 percent, to $22.63.