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.
Statoil (EQNR) Hits a 52-Week High, Can the Run Continue?
Read MoreHide Full Article
Have you been paying attention to shares of Statoil ASA (EQNR - Free Report) ? Shares have been on the move with the stock up 7% over the past month. EQNR hit a new 52-week high of $27.45 in the previous session. Statoil has gained 27.9% since the start of the year compared to the 12.1% move for the Oils-Energy sector and the 11.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 25, 2018, Statoil reported EPS of $0.45 versus the Zacks Consensus Estimate of $0.4 while it beat the consensus revenue estimate by 13.13%.
For the current fiscal year, Statoil is expected to post earnings of $1.63 per share on $68.68 billion in revenues. This represents a 18.12% change in EPS on a 12.24% change in revenues. For the next fiscal year, the company is expected to earn $1.7 per share on $67.38 billion in revenues. This represents a year-over-year change of 3.89% and -1.89%, respectively.
Valuation Metrics
Statoil may be at a 52-week high right now, but what might the future hold for EQNR? 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 these give investors a variety of ways to comb 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Statoil 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 16.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 6.9X versus its peer group's average of 6X. Additionally, the stock has a PEG ratio of 0.84. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Statoil currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Statoil fits the bill. Thus, it seems as though EQNR shares could still be poised for more gains ahead.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Statoil (EQNR) Hits a 52-Week High, Can the Run Continue?
Have you been paying attention to shares of Statoil ASA (EQNR - Free Report) ? Shares have been on the move with the stock up 7% over the past month. EQNR hit a new 52-week high of $27.45 in the previous session. Statoil has gained 27.9% since the start of the year compared to the 12.1% move for the Oils-Energy sector and the 11.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 25, 2018, Statoil reported EPS of $0.45 versus the Zacks Consensus Estimate of $0.4 while it beat the consensus revenue estimate by 13.13%.
For the current fiscal year, Statoil is expected to post earnings of $1.63 per share on $68.68 billion in revenues. This represents a 18.12% change in EPS on a 12.24% change in revenues. For the next fiscal year, the company is expected to earn $1.7 per share on $67.38 billion in revenues. This represents a year-over-year change of 3.89% and -1.89%, respectively.
Valuation Metrics
Statoil may be at a 52-week high right now, but what might the future hold for EQNR? 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 these give investors a variety of ways to comb 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Statoil 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 16.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 6.9X versus its peer group's average of 6X. Additionally, the stock has a PEG ratio of 0.84. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Statoil ASA Price and Consensus
Statoil ASA Price and Consensus | Statoil ASA Quote
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, Statoil currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Statoil fits the bill. Thus, it seems as though EQNR shares could still be poised for more gains ahead.