We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Hold Strategy is Apt for Callon Petroleum (CPE) Stock Now
Read MoreHide Full Article
Callon Petroleum Company has witnessed no estimate revisions for its 2023 earnings in the past seven days. The Zacks Consensus Estimate for its 2023 earnings estimate is pegged at $8.85 per share.
What’s Favoring the Stock?
West Texas Intermediate crude price, trading at more than $70 per barrel, is still highly favorable for exploration and production activities.
Being a leading exploration and production company, Callon Petroleum is well-positioned to capitalize on handsome crude prices. The firm, carrying a Zacks Rank #3 (Hold), has a strong footprint in Permian, the most prolific basin in the United States, brightening its production outlook. In the top-tier Permian portfolio, Callon Petroleum has identified decade-long high-return drilling inventory, brightening its production outlook.
CPE is also focused on greenhouse gas emissions and lowering routine flaring. The new targets of Callon Petroleum also comprise strengthening its financials while deleveraging the balance sheet.
Risks
Compared with the 2.43% dividend yield of the composite stocks belonging to the industry, Callon Petroleum’s yield is 0%. Also, rising lease operating expenses are hurting its bottom line.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past 30 days.
Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Why Hold Strategy is Apt for Callon Petroleum (CPE) Stock Now
Callon Petroleum Company has witnessed no estimate revisions for its 2023 earnings in the past seven days. The Zacks Consensus Estimate for its 2023 earnings estimate is pegged at $8.85 per share.
What’s Favoring the Stock?
West Texas Intermediate crude price, trading at more than $70 per barrel, is still highly favorable for exploration and production activities.
Being a leading exploration and production company, Callon Petroleum is well-positioned to capitalize on handsome crude prices. The firm, carrying a Zacks Rank #3 (Hold), has a strong footprint in Permian, the most prolific basin in the United States, brightening its production outlook. In the top-tier Permian portfolio, Callon Petroleum has identified decade-long high-return drilling inventory, brightening its production outlook.
CPE is also focused on greenhouse gas emissions and lowering routine flaring. The new targets of Callon Petroleum also comprise strengthening its financials while deleveraging the balance sheet.
Risks
Compared with the 2.43% dividend yield of the composite stocks belonging to the industry, Callon Petroleum’s yield is 0%. Also, rising lease operating expenses are hurting its bottom line.
Stocks to Consider
Better-ranked players in the energy space include Murphy USA Inc. (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Dril-Quip, Inc. (DRQ - Free Report) . While Dril-Quip carries a Zacks Rank #2 (Buy), Sunoco and Murphy USA sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past 30 days.
Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector.