Shares of Penn Virginia have been strong performers lately, with the stock up 46.8% over the past month. The stock hit a new 52-week high of $20.18 in the previous session. Penn Virginia has gained 79.2% since the start of the year compared to the 21.5% move for the Zacks Oils-Energy sector and the 55% return for the Zacks Oil and Gas - Exploration and Production - United States industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 8, 2021, Penn Virginia reported EPS of $1.43 versus consensus estimate of $1.05 while it missed the consensus revenue estimate by 9.3%.
For the current fiscal year, Penn Virginia is expected to post earnings of $1.63 per share on $335.6 million in revenues. This represents a -71.45% change in EPS on a 22.81% change in revenues. For the next fiscal year, the company is expected to earn $2.38 per share on $388 million in revenues. This represents a year-over-year change of 46.17% and 15.61%, respectively.
Valuation Metrics
Penn Virginia may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Penn Virginia has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 0.9X versus its peer group's average of 3.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Penn Virginia currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Penn Virginia passes the test. Thus, it seems as though Penn Virginia shares could have potential in the weeks and months to come.
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Penn Virginia (PVAC) Soars to 52-Week High, Time to Cash Out?
Shares of Penn Virginia have been strong performers lately, with the stock up 46.8% over the past month. The stock hit a new 52-week high of $20.18 in the previous session. Penn Virginia has gained 79.2% since the start of the year compared to the 21.5% move for the Zacks Oils-Energy sector and the 55% return for the Zacks Oil and Gas - Exploration and Production - United States industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 8, 2021, Penn Virginia reported EPS of $1.43 versus consensus estimate of $1.05 while it missed the consensus revenue estimate by 9.3%.
For the current fiscal year, Penn Virginia is expected to post earnings of $1.63 per share on $335.6 million in revenues. This represents a -71.45% change in EPS on a 22.81% change in revenues. For the next fiscal year, the company is expected to earn $2.38 per share on $388 million in revenues. This represents a year-over-year change of 46.17% and 15.61%, respectively.
Valuation Metrics
Penn Virginia may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Penn Virginia has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 0.9X versus its peer group's average of 3.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Penn Virginia currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Penn Virginia passes the test. Thus, it seems as though Penn Virginia shares could have potential in the weeks and months to come.