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Texas Pacific (TPL) Gains But Lags Market: What You Should Know

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Texas Pacific (TPL - Free Report) closed the most recent trading day at $1,995.85, moving +0.41% from the previous trading session. This change lagged the S&P 500's 1.46% gain on the day. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 6.63%.

Coming into today, shares of the landowner had lost 15.21% in the past month. In that same time, the Oils-Energy sector gained 1.9%, while the S&P 500 gained 4.75%.

Texas Pacific will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2023. The company is expected to report EPS of $16.24, up 59.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $185.21 million, up 25.84% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Texas Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Texas Pacific currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Texas Pacific has a Forward P/E ratio of 27.9 right now. For comparison, its industry has an average Forward P/E of 24.45, which means Texas Pacific is trading at a premium to the group.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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