On Apr 17, Zacks Investment Research upgraded
Cabot Oil & Gas Corporation
) - an independent energy exploration and production (E&P)
company - to a Zacks Rank #2 (Buy).
CABOT OIL & GAS (COG): Free Stock Analysis
EPL OIL&GAS INC (EPL): Free Stock Analysis
CHENIERE ENERGY (LNG): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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Why the Upgrade?
Cabot witnessed rising earnings estimates on the back of
excellent fourth-quarter 2012 results. Moreover, this Houston,
Texas based company delivered positive earnings surprises in the
last two quarters with a beat of 14.3% and 13.3%, respectively.
The long-term expected sales growth rate for this stock is 5.4%.
On Feb 21, 2013, Cabot reported strong fourth-quarter 2012
results, owing to enhanced output and higher crude oil prices.
The company posted fourth-quarter earnings per share of 24 cents,
comfortably beating the Zacks Consensus Estimate of 21 cents. The
quarterly figure also improved 50.0% from the year-earlier profit
of 16 cents.
Moreover, Cabot's year-end 2012 proved reserves increased 26.7%
year over year to 3,842.4 billion cubic feet equivalent (bcfe),
which marked the third successive year of reserve growth of above
Additionally, Cabot's diversified asset portfolio is spread
between low-risk/long reserve-life Appalachian assets and
large-volume/rapid-payout Gulf Coast properties, with further
variety from large prospect inventories in the Rocky Mountains
and the Anadarko Basin that have a broad mix of production and
As a result of these bullish factors, the tendency for an upward
estimate revision has been obvious in recent times. The Zacks
Consensus Estimate for 2013 has increased by 3.8% to $1.38 per
share, over the last 30 days.
Stocks to Consider
Other oil and gas exploration and production companies that are
expected to significantly outperform the broader U.S. equity
markets in the next one to three months are
EPL Oil & Gas Inc.
Cheniere Energy Inc.
Range Resources Corporation
). All three stocks carry a Zacks Rank #1 (Strong Buy).