Tag Archives: NFX

Hot Small Cap Stocks To Watch For 2019

It’s that time of the year again when Americans get in their cars and hit the road for a week or two of family fun.

Allianz Travel Insurance reviewed its customers’ trips planned between May 28 and Sept. 3 and found that Americans staying within the U.S. this summer plan to visit Orlando, New York City and Las Vegas in that order of popularity, with Los Angeles and Honolulu rounding out the top five.

Of course, if you’re not staying with friends or family, you’ve got to book a place to crash, whether it’s a hotel, vacation rental, RV park or one of the other exciting accommodations available these days.

I am someone who believes in the investment idea of paying yourself first — which I define as a profitable investment that lowers your cost of buying a consumer product or service by owning the stock of the company that makes that product or service — so your vacation isn’t quite as big a hit to your pocketbook.

With that in mind, here are the seven hotel stocks to buy now, ranked from best to worst.

Hot Small Cap Stocks To Watch For 2019: Newfield Exploration Company(NFX)

To round off this list, we have Newfield Exploration Co. (NYSE:NFX) — a stock with big exposure to the oil-rich STACK play in the Anadarko basin of Oklahoma. As Newfield CEO Lee Boothby says, “The Anadarko Basin is the asset that will fuel our growth and transition us to living within cash flow from operations. We expect our development of these assets will yield rapid growth from here.”

Meanwhile Jefferies analyst Mark Lear believes shares look undervalued right now. “The market’s buckshot approach to STACK valuation has created an opportunity in Newfield, where we see 2017 wells outperforming 2014-2016 wells… The company is in show-me mode and should rerate with execution.”

Indeed, turning to our data, we can see that Williams Capital analyst Gabriele Sorbara has just reiterated his Newfield buy rating following ‘great’ Q1 results. “After the market close yesterday, NFX reported great 1Q18 results with a beat across production, EPS and DCFPS [discretionary cash flow per share]” writes Sorbara. He has a $39 price target on the stock. And looking forward, Newfield has now boosted its production guidance by 1.9% to 178.0-190 Mboe/d.

In the last three months, only two analysts out of 12 have stayed on the sidelines. The $36 average analyst price target works out at 25% upside from the current share price. On the bullish end, Piper Jaffray’s David Kistler is forecasting over 55% upside potential for this ‘Strong Buy’ stock.

Hot Small Cap Stocks To Watch For 2019: Lloyds Banking Group Plc(LYG)

Lloyds Banking Group is a U.K.-based financial services company offering retail banking, insurance and investments, and wholesale and international banking. The stock is currently a Zacks Rank #1 (Strong Buy) and trades with attractive valuation metrics, including a P/E of 7.1, a P/B of 1.0, and a P/S of 1.8—all of which mark discounts to the “Banks – Foreign” industry averages.

Hot Small Cap Stocks To Watch For 2019: Palo Alto Networks, Inc.(PANW)

“Another day, another hack, another reason to buy a cybersecurity stock” could just as easily read “Another day, another hack, another reason to buy Palo Alto Networks Inc (NYSE:PANW)”.

In other words, Palo Alto Networks is so big and so good at what they do that the company may as well be a substitute for the entire cybersecurity space. The company not only dominates the cybersecurity space, but that dominance comes with a consistent track record of 20%-plus revenue growth and healthy operating margin expansion.

This growth will continue. PANW’s customer base continues to grow at an absurd rate, while revenue growth continues to run at a 20%-plus rate. Sustained sizable growth in both user base and revenues illustrates that PANW is fully reaping the secular tailwinds pushing forth cybersecurity solution adoption globally.

This strong growth will lead to PANW stock heading materially higher.

Over the past 5 years, revenues have grown at a compounded annual growth rate of nearly 50%, while operating margins have zoomed from 7.2% to 20.1%. Growth will inevitably slow over the next 5 years, but that 50% growth could very easily stabilize at 20% growth per year over the next 5 years. Meanwhile, margins will keep roaring higher so long as revenue growth remains robust. Thus, margins could also very easily hit 30% in 5 years.

The combination of 50% revenue growth and another 10 points of operating margin expansion will lead to huge earnings growth over the next several years. That continued strong earnings growth will power PANW stock significantly higher from current levels.

Hot Warren Buffett Stocks To Buy Right Now

Income investors generally look for high-dividend stocks and low risk. But that’s a difficult combination to find. Dividend yields can rise if the dividend increases; they more often, and more quickly, rise if the stock price falls. And that, in turn, means that many high-yield stocks aren’t performing all that well at the moment — and may have reasonably significant risks going forward.

One way for dividend stock investors to minimize risk is to focus on the balance sheet. Cash-rich companies can be attractive for income investors for two reasons. First, the cash balance protects the dividend itself, by providing a source of funds to keep the dividend intact (or to raise it) in a down year. And second, a clean balance sheet limits the risk to an investor’s capital.

Here are 20 dividend stocks with yields over 3% — and net cash on the balance sheet. All could — and maybe should — be considered for any income investor’s portfolio.

Hot Warren Buffett Stocks To Buy Right Now: Noble Corporation(NE)

Noble Corporation PLC (NYSE:NE) shares are extending a 55%-plus rally off of its early April lows, closing in on the January high near $5.80, setting up a possible breakout from a long consolidation range going back to the summer of 2017.

The company will next report results on Aug. 2 after the close. Analysts are looking for a loss of 45 cents per share on revenues of $265.5 million.

When the company last reported on May 2, a loss of 55 cents per share beat estimates by a penny on a 35.2% decline in revenues.

Hot Warren Buffett Stocks To Buy Right Now: ENSCO plc(ESV)

In a pattern similar to NE, Ensco PLC (NYSE:ESV) is rising powerfully off of its early April low for a rally that’s already booked a gain of 55% from the nadir. This caps a long consolidation range going back to the summer of 2017. Watch for a run at the early 2017 highs near $12, which would be worth a gain of more than 80% from current levels.

The company will next report results on July 25 after the close. Analysts are looking for a loss of 28 cents per share on revenues of $445 million. When the company last reported on April 25, a loss of 32 cents per share missed estimates by five cents on an 11.5% decline in revenues.

Hot Warren Buffett Stocks To Buy Right Now: Newfield Exploration Company(NFX)

From the oil and gas exploration and production group, Newfield Exploration Company (NFX, $27.91) was one of the worst performers over the past 17 months as it fell from a high of $50 to a low of $22.72. On Feb. 21, the company released better-than-expected Q4 earnings, yet the stock tumbled more than 10% that day.

 

In charting lingo, it was the culmination of a bearish trend and ended with a selling climax. This is a final washout where the last bulls finally throw in the towel. The good news is that it sets up a rather strong condition for a rally. Indeed, buyers started to test the waters and money started to flow back into the stock shortly thereafter. All that was needed to unleash this bullish sentiment was crude oil’s move to a three-year high in April.

The trailing 12-month price-to-earnings ratio on NFX is roughly 13, which is below the sector’s average P/E. Its forward P/E (based on analyst estimates for the coming year’s earnings) is 8.9, which also is historically on the low side.

That means the market has not yet priced the stock for the improvements expected by analysts.

Technically, NFX is rising off the bottom of a multiyear trading range at around $23 per share. The top of the range is near $48, so there is plenty of room for the stock to rally before running into an overwhelming amount of supply, or sellers willing to unload shares at what was historically an expensive price.