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Texas Pacific (TPL) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Texas Pacific (TPL - Free Report) closed at $1,897.91, marking a -1.59% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 3.77%.

Prior to today's trading, shares of the landowner had lost 8.54% over the past month. This has lagged the Oils-Energy sector's gain of 1.16% and the S&P 500's gain of 3.54% in that time.

Texas Pacific will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2023. In that report, analysts expect Texas Pacific to post earnings of $14.72 per share. This would mark year-over-year growth of 44.17%. Our most recent consensus estimate is calling for quarterly revenue of $171.71 million, up 16.67% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Texas Pacific. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 3.38% higher within the past month. Texas Pacific is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Texas Pacific is holding a Forward P/E ratio of 29.51. Its industry sports an average Forward P/E of 22.23, so we one might conclude that Texas Pacific is trading at a premium comparatively.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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