Market Overview

Three Oil & Gas Stocks Analysts Are Keen On (NGL, HNR, EVEP)

Here is a quick look three top-performing oil and gas stocks with a consensus recommendation of analysts of Strong Buy. They are EV Energy Partners (NASDAQ: EVEP), Harvest Natural Resources (NASDAQ: HNR) and NGL Energy Partners (NYSE: NGL).

EV Energy Partners

Based in Houston, this limited partnership acquires, develops and produces oil and natural gas properties in the United States. The market capitalization is about $2.7 billion and the company offers a dividend yield of about 4.9 percent. Shares are on the rise again after a sell-off in the spring, but the share price is still about 15 percent south of the 52-week high. The price-to-earnings (P/E) ratio is higher than the industry average, but so is the operating margin. Short interest is a little more than one percent of the float. Eight of the 10 analysts surveyed by Thomson/First Call recommend buying shares; none recommend selling. They believe the stock has room to run, as their mean price target is more than 14 percent higher than the current share price. That share price has climbed more than 24 percent in the past 90 days, though. Over the past six months, the stock has outperformed competitor Chesapeake Energy (NYSE: CHK) but underperformed the broader markets.

Harvest Natural Resources

This independent energy company explores, develops and produces oil and natural gas properties in Venezuela, Indonesia, the People's Republic of China and elsewhere. It has a market cap of near $343 million and it is headquartered in Houston as well. The forward earnings multiple is less than the industry average P/E ratio. But note that the return on equity is in negative territory, and short interest is more than 18 percent of the float. Second quarter earnings per share (EPS) declined year-over-year but beat consensus estimates. Only two analysts who follow the stock were polled by Thomson Reuters, but they both recommend buying shares. Their mean price target is more than 15 percent higher than the current share price, but more than 11 percent less than the 52-week high. Harvest Natural has outperformed the broader markets over the past six months, due in part to a share price surge in June after the company announced that it was selling its stake in a project in Venezuela.

NGL Energy Partners

This Tulsa, Oklahoma-based company engages in propane and other natural gas liquids businesses in the United States. Its market cap is near $1.2 billion and the dividend yield is about 6.5 percent. The long-term EPS growth forecast is about 13 percent, but the forward earnings multiple is more than the industry average P/E ratio. Revenue for the current quarter is forecast to surge more than 250 percent year-over-year. Short interest is less than one percent of the float. All four analysts who follow the stock and were surveyed rate it at Buy or Strong Buy. Their mean price target, or where they expect the share price to go, is about 15 percent higher than the current share price, as well as above the 52-week high. The stock is up more than 20 percent year to date. Over the past six months, NGL Energy Partners has outperformed competitors AmeriGas Partners (NYSE: APU) and Ferrellgas Partners (NYSE: FGP).

Posted-In: AmeriGas Partners chesapeake energy EV Energy Partners ferrellgas partners Harvest Natural Resources ngl energy partnersLong Ideas Short Ideas Trading Ideas Best of Benzinga

 

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