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Bull of the Day: Texas Pacific Land (TPL)

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The Zacks Oils and Energy sector has been the best place to hide out in 2022, up more than 30% vs. the S&P 500’s 17% decline.

A company residing in the realm, Texas Pacific Land Corp. (TPL - Free Report) , has seen its near-term earnings outlook turn visibly bright over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

Texas Pacific Land is one of the largest landowners in Texas that operates under two business segments: Land and Resource Management and Water Services and Operations. Let’s take a closer look at how the company currently stacks up.

Share Performance & Quarterly Results

TPL shares have been scorching hot year-to-date, up more than a triple-digit 100% and crushing the S&P 500’s performance.

Zacks Investment Research
Image Source: Zacks Investment Research

And just over the last three months, TPL shares are up more than 40%, again outperforming the general market.

Additionally, the company has delivered better-than-expected quarterly results as of late, exceeding earnings and revenue estimates in back-to-back quarters.

Just in its latest release, TPL registered a 17% bottom-line beat paired with an 8.8% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Growth Outlook

The company has a favorable growth profile; for its current fiscal year (FY22), the Zacks Consensus EPS Estimate of $59.96 indicates a sizable 72% Y/Y uptick. And in FY23, TPL’s bottom-line is forecasted to grow a further 5.5% Y/Y.

TPL’s top-line is also in solid standing, with revenue estimates calling for 53% Y/Y growth in FY22 and 14% in FY23.

Dividends

Who doesn’t like to get paid?

For those with an appetite for income, TPL has that covered; the company’s annual dividend yields a modest 0.5%, below its Zacks sector average by a fair margin.

Still, the company’s impressive 108% five-year annualized dividend growth rate helps to pick up the slack in a big way.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Texas Pacific Land Corp. (TPL - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).


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