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SilverBow Resources (SBOW) Hit a 52 Week High, Can the Run Continue?
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Shares of SilverBow Resources have been strong performers lately, with the stock up 13% over the past month. The stock hit a new 52-week high of $49.91 in the previous session. SilverBow Resources has gained 114.1% since the start of the year compared to the 34% move for the Zacks Oils-Energy sector and the 51.1% 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 August 3, 2022, SilverBow reported EPS of $3.01 versus consensus estimate of $1.82 while it beat the consensus revenue estimate by 66.01%.
For the current fiscal year, SilverBow is expected to post earnings of $16.71 per share on $684 million in revenues. This represents a 160.28% change in EPS on a 67.98% change in revenues. For the next fiscal year, the company is expected to earn $16.91 per share on $926 million in revenues. This represents a year-over-year change of 1.2% and 35.38%, respectively.
Valuation Metrics
SilverBow 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 is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
SilverBow has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 2.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 5.5X. On a trailing cash flow basis, the stock currently trades at 3.7X versus its peer group's average of 6.1X. 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, SilverBow currently has a Zacks Rank of #2 (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 SilverBow meets the list of requirements. Thus, it seems as though SilverBow shares could have potential in the weeks and months to come.
How Does SBOW Stack Up to the Competition?
Shares of SBOW have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is EQT Corporation (EQT - Free Report) . EQT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. EQT Corporation beat our consensus estimate by 2.47%, and for the current fiscal year, EQT is expected to post earnings of $3.83 per share on revenue of $5.98 billion.
Shares of EQT Corporation have gained 5% over the past month, and currently trade at a forward P/E of 12.49X and a P/CF of 8.84X.
The Oil and Gas - Exploration and Production - United States industry may rank in the bottom 51% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SBOW and EQT, even beyond their own solid fundamental situation.
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SilverBow Resources (SBOW) Hit a 52 Week High, Can the Run Continue?
Shares of SilverBow Resources have been strong performers lately, with the stock up 13% over the past month. The stock hit a new 52-week high of $49.91 in the previous session. SilverBow Resources has gained 114.1% since the start of the year compared to the 34% move for the Zacks Oils-Energy sector and the 51.1% 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 August 3, 2022, SilverBow reported EPS of $3.01 versus consensus estimate of $1.82 while it beat the consensus revenue estimate by 66.01%.
For the current fiscal year, SilverBow is expected to post earnings of $16.71 per share on $684 million in revenues. This represents a 160.28% change in EPS on a 67.98% change in revenues. For the next fiscal year, the company is expected to earn $16.91 per share on $926 million in revenues. This represents a year-over-year change of 1.2% and 35.38%, respectively.
Valuation Metrics
SilverBow 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 is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
SilverBow has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 2.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 5.5X. On a trailing cash flow basis, the stock currently trades at 3.7X versus its peer group's average of 6.1X. 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, SilverBow currently has a Zacks Rank of #2 (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 SilverBow meets the list of requirements. Thus, it seems as though SilverBow shares could have potential in the weeks and months to come.
How Does SBOW Stack Up to the Competition?
Shares of SBOW have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is EQT Corporation (EQT - Free Report) . EQT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. EQT Corporation beat our consensus estimate by 2.47%, and for the current fiscal year, EQT is expected to post earnings of $3.83 per share on revenue of $5.98 billion.
Shares of EQT Corporation have gained 5% over the past month, and currently trade at a forward P/E of 12.49X and a P/CF of 8.84X.
The Oil and Gas - Exploration and Production - United States industry may rank in the bottom 51% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SBOW and EQT, even beyond their own solid fundamental situation.