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Illumina and Exxon Mobile have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – September 10, 2024 – Zacks Equity Research shares Illumina (ILMN - Free Report) as the Bull of the Day and Exxon Mobile (XOM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Company (BKR - Free Report) , Diamondback Energy (FANG - Free Report) and Matador Resources (MTDR - Free Report) .
The market bounced back Monday after a rough week last week. We are not out of the woods yet as a huge CPI report looms on Wednesday. That sort of risk event has the power to rock financial markets. Investors looking for stocks to buy should look outside of the crowded names out there. Yes, there are opportunities outside of the Mag 7. One way to uncover these opportunities is by leaning on the Zacks Rank. Stocks with favorable Zacks Ranks have strong earnings trends which could spell profits in the future.
Today’s Bull of the Day is one such stock. It’s Zacks Rank #1 (Strong Buy) Illumina. Illumina, Inc. offers sequencing- and array-based solutions for genetic and genomic analysis in the United States, Singapore, the United Kingdom, and internationally. It operates through Core Illumina and GRAIL segments. The company offers sequencing and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest.
This is a biotech company that makes money, not a pie in the sky idea. Current year EPS is forecast to come in at $3.62. That number has more than doubled in the last sixty days. Over that period, six analysts have increased their earnings estimates for the company. That huge move higher in our Zacks Consensus Estimate is the reason why the stock is currently a Zacks Rank #1 (Strong Buy).
Next year’s number is forecast to grow by 24% to $4.50. That puts forward PE at 34.3x. Compare that to an industry average of a negative PE.
A quick look at the Price, Consensus and EPS Surprise Chart shows how the expectations have changed over time. Estimates started sky high in 2021 and spent three years moving in a negative direction. That trend has changed as earnings expectations have bottomed out and are now beginning to tick higher. That turnaround in earnings could be exactly what this stock needs to see in order to get back to highs over $500.
Last week’s pullback has investors looking for stocks to buy. One of the most popular sectors for investors to look at is the energy sector. Most of us spend more money and time at gas stations than we’d like to. It can feel like an easy way to get some of that money back. Be careful to not just blindly buy any energy stock that you’re familiar with. There can be negative trends developing which you don’t realize.
Today’s Bear of the Day is a very popular stock that has seen earnings estimates trend in a negative direction. Its integrated oil giant Exxon Mobile. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments.
Exxon is currently a Zacks Rank #5 (Strong Sell) in the Oil and Gas – Integrated – International industry which ranks in the Bottom 23% of our Zacks Industry Rank. The reason for the unfavorable rank is that eight analysts have dropped their earnings estimates for the current year and next year. The bearish moves have cut the current year Zacks Consensus Estimate from $9.37 to $8.37 while next year’s number is off from $10.18 to $9.23.
The good news for the bulls out there is that Exxon is expecting earnings growth of 10.2% next year. Revenue growth has been steady as well, with 4.5% growth this year and 3.95% next year.
Additional content:
U.S. Rig Count Falls: Should Investors Still Watch FANG, MTDR Stocks?
In its weekly release, Baker Hughes Company stated that the U.S. rig count was lower than the prior week’s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Amid a declining weekly rig count, should investors keep an eye on leading oil and gas exploration companies like Diamondback Energy and Matador Resources Before diving into that, let's explore the latest rig count data details.
Baker Hughes’ Data: Rig Count in Detail
Total U.S. Rig Count Falls:The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 582 in the week ended Sept. 6, lower than the week-ago count of 583. Moreover, the current national rig count declined from the year-ago level of 632, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Sept. 6 totaled 562, lower than the prior week's count of 563. In offshore resources, 19 rigs were operating, in line with the week-ago count.
U.S. Oil Rig Count Flat: The oil rig count was 483 in the week ending Sept. 6, which is in line with the week-ago figure. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — was down from the year-ago figure of 513.
U.S. Natural Gas Rig Count Declines: The natural gas rig count of 94 was lower than the week-ago figure of 95. The count of rigs exploring the commodity was also below the year-ago week’s tally of 113. Per the latest report, the number of natural gas-directed rigs is 94.1% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 14 units, in line with the week-ago count. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 568 was down from the prior-week level of 569.
Rig Tally in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil and gas rig count of 306, which was higher than the week-ago figure of 305. The count was, however, below the prior-year level of 320.
Handsome Oil Prices Offer Cushion: FANG, MTDR to Watch
The West Texas Intermediate (WTI) crude price is trading close to $70 per barrel, which remains favorable for exploration and production activities. Despite a slowdown in drilling due to upstream companies focusing on stockholder returns over increasing output, the handsome oil pricing environment benefits upstream energy companies. This is because the breakeven WTI price for U.S. oil and gas producers is significantly lower for existing wells across all shale plays in the United States, as shown in the image below. Additionally, for most new wells, the average breakeven WTI price remains below the current market price.
Breakeven WTI Price for U.S. Producers
Amid the backdrop, investors seeking medium to long-term gains may keep an eye on energy stocks like Diamondback Energy and Matador Resources.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company, carrying a Zacks Rank #3 (Hold), is likely to continue witnessing increased production volumes.
The pending Endeavor merger, likely to be completed in the third or fourth quarter of this year, will increase its Permian footprint, which the company cited at a combined pro forma scale of approximately 838,000 net acres. With the merger, FANG will have more inventory of core drilling locations with a breakeven oil price of less than $40 per barrel.
Matador Resources recently entered into a $1.91 billion agreement to expand its footprint in the prolific Delaware Basin. With the deal expected to close in the late third quarter of 2024, the #3 Ranked company is projected to have more than 190,000 net acres in the Delaware Basin on a pro forma basis. Consequently, the company estimates that its production will exceed 180,000 barrels of oil equivalent per day, positioning it for significant growth and enhanced operational scale.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Illumina and Exxon Mobile have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 10, 2024 – Zacks Equity Research shares Illumina (ILMN - Free Report) as the Bull of the Day and Exxon Mobile (XOM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Company (BKR - Free Report) , Diamondback Energy (FANG - Free Report) and Matador Resources (MTDR - Free Report) .
Here is a synopsis of all three stocks.
Bull of the Day:
The market bounced back Monday after a rough week last week. We are not out of the woods yet as a huge CPI report looms on Wednesday. That sort of risk event has the power to rock financial markets. Investors looking for stocks to buy should look outside of the crowded names out there. Yes, there are opportunities outside of the Mag 7. One way to uncover these opportunities is by leaning on the Zacks Rank. Stocks with favorable Zacks Ranks have strong earnings trends which could spell profits in the future.
Today’s Bull of the Day is one such stock. It’s Zacks Rank #1 (Strong Buy) Illumina. Illumina, Inc. offers sequencing- and array-based solutions for genetic and genomic analysis in the United States, Singapore, the United Kingdom, and internationally. It operates through Core Illumina and GRAIL segments. The company offers sequencing and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest.
This is a biotech company that makes money, not a pie in the sky idea. Current year EPS is forecast to come in at $3.62. That number has more than doubled in the last sixty days. Over that period, six analysts have increased their earnings estimates for the company. That huge move higher in our Zacks Consensus Estimate is the reason why the stock is currently a Zacks Rank #1 (Strong Buy).
Next year’s number is forecast to grow by 24% to $4.50. That puts forward PE at 34.3x. Compare that to an industry average of a negative PE.
A quick look at the Price, Consensus and EPS Surprise Chart shows how the expectations have changed over time. Estimates started sky high in 2021 and spent three years moving in a negative direction. That trend has changed as earnings expectations have bottomed out and are now beginning to tick higher. That turnaround in earnings could be exactly what this stock needs to see in order to get back to highs over $500.
Bear of the Day:
Last week’s pullback has investors looking for stocks to buy. One of the most popular sectors for investors to look at is the energy sector. Most of us spend more money and time at gas stations than we’d like to. It can feel like an easy way to get some of that money back. Be careful to not just blindly buy any energy stock that you’re familiar with. There can be negative trends developing which you don’t realize.
Today’s Bear of the Day is a very popular stock that has seen earnings estimates trend in a negative direction. Its integrated oil giant Exxon Mobile. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments.
Exxon is currently a Zacks Rank #5 (Strong Sell) in the Oil and Gas – Integrated – International industry which ranks in the Bottom 23% of our Zacks Industry Rank. The reason for the unfavorable rank is that eight analysts have dropped their earnings estimates for the current year and next year. The bearish moves have cut the current year Zacks Consensus Estimate from $9.37 to $8.37 while next year’s number is off from $10.18 to $9.23.
The good news for the bulls out there is that Exxon is expecting earnings growth of 10.2% next year. Revenue growth has been steady as well, with 4.5% growth this year and 3.95% next year.
Additional content:
U.S. Rig Count Falls: Should Investors Still Watch FANG, MTDR Stocks?
In its weekly release, Baker Hughes Company stated that the U.S. rig count was lower than the prior week’s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Amid a declining weekly rig count, should investors keep an eye on leading oil and gas exploration companies like Diamondback Energy and Matador Resources Before diving into that, let's explore the latest rig count data details.
Baker Hughes’ Data: Rig Count in Detail
Total U.S. Rig Count Falls:The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 582 in the week ended Sept. 6, lower than the week-ago count of 583. Moreover, the current national rig count declined from the year-ago level of 632, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Sept. 6 totaled 562, lower than the prior week's count of 563. In offshore resources, 19 rigs were operating, in line with the week-ago count.
U.S. Oil Rig Count Flat: The oil rig count was 483 in the week ending Sept. 6, which is in line with the week-ago figure. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — was down from the year-ago figure of 513.
U.S. Natural Gas Rig Count Declines: The natural gas rig count of 94 was lower than the week-ago figure of 95. The count of rigs exploring the commodity was also below the year-ago week’s tally of 113. Per the latest report, the number of natural gas-directed rigs is 94.1% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 14 units, in line with the week-ago count. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 568 was down from the prior-week level of 569.
Rig Tally in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil and gas rig count of 306, which was higher than the week-ago figure of 305. The count was, however, below the prior-year level of 320.
Handsome Oil Prices Offer Cushion: FANG, MTDR to Watch
The West Texas Intermediate (WTI) crude price is trading close to $70 per barrel, which remains favorable for exploration and production activities. Despite a slowdown in drilling due to upstream companies focusing on stockholder returns over increasing output, the handsome oil pricing environment benefits upstream energy companies. This is because the breakeven WTI price for U.S. oil and gas producers is significantly lower for existing wells across all shale plays in the United States, as shown in the image below. Additionally, for most new wells, the average breakeven WTI price remains below the current market price.
Breakeven WTI Price for U.S. Producers
Amid the backdrop, investors seeking medium to long-term gains may keep an eye on energy stocks like Diamondback Energy and Matador Resources.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company, carrying a Zacks Rank #3 (Hold), is likely to continue witnessing increased production volumes.
The pending Endeavor merger, likely to be completed in the third or fourth quarter of this year, will increase its Permian footprint, which the company cited at a combined pro forma scale of approximately 838,000 net acres. With the merger, FANG will have more inventory of core drilling locations with a breakeven oil price of less than $40 per barrel.
Matador Resources recently entered into a $1.91 billion agreement to expand its footprint in the prolific Delaware Basin. With the deal expected to close in the late third quarter of 2024, the #3 Ranked company is projected to have more than 190,000 net acres in the Delaware Basin on a pro forma basis. Consequently, the company estimates that its production will exceed 180,000 barrels of oil equivalent per day, positioning it for significant growth and enhanced operational scale.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.