For Immediate Release
Chicago, IL – May 24, 2022 – Zacks Equity Research shares Marathon Oil MRO as the Bull of the Day and Boeing BA as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Co. BKR, Whiting Petroleum Corp. WLL and Continental Resources, Inc. CLR.
Here is a synopsis of all five stocks:
Bull of the Day:
Oil prices have obviously been on the move. There are several reasons why. Among them, general inflationary pressures, the conflict in Europe, and increased demand from consumers. For the average American, it can feel like a tax. If you're looking for a way to get some of that revenue back, just go ahead and invest in oil companies. That's the story with today's Bull of the Day, Marathon Oil.
Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol.
Marathon is currently a Zacks Rank #1 (Strong Buy). The reason for the favorable Zacks Rank is that over the course of the last 60 days, eight analysts have increased their earnings estimates while only one has dropped them. For next year, nine analysts have upped the ante while only a single analyst has cut estimates. The bullish behavior has pushed up our Zacks Consensus Estimates for the current year from $2.83 to $4.94 while next year's is up from $2.04 to $4.46.
The moves have helped underpin a rally in the stock that has taken it from under $4 in late 2020 to over $27 now. A quick look at the Price, Consensus, and EPS Surprise Chart reveals the strong trends in both earnings and the stock price.
Bear of the Day:
There are few stock stories more frustrating for the American investor than today's Bear of the Day. A series of unfortunate events led to the demise of this once mighty giant of a company. To be fair, it is still a mega cap company. I can't tell you how many times I tried to buy the dip, hoping for a great turnaround story to unfold. As of yet, it has not happened for me.
I am talking about Zacks Rank #5 (Strong Sell) Boeing. The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital.
The hit to Boeing's earnings has been remarkable. Over the course of the last thirty days, five analysts have cut their earnings estimates for the current year. If you look out to next year's fiscal year, four analysts have done the same. The bearish moves have dropped our Zacks Consensus Estimate for the current year to an 11-cent loss. Next year, there is a hope for a return to profitability. The Zacks Consensus Estimate calls for a profit of $5.46.
Boeing is a member of the Aerospace – Defense industry which ranks in the Bottom 16% of our Zacks Industry Rank. Most stocks in this industry are actually Zacks Rank #3 (Hold) stocks
Additional content:
Permian Oil Rig Count Rises After Flat 2 Weeks
In its weekly release, Baker Hughes Co. reported that the U.S. rig count was higher than the prior-week tally. The rotary rig count, issued by BKR, usually gets 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 prior-week figure indicates the demand trajectory for Baker Hughes' oilfield services from exploration and production companies.
Details
Total U.S. Rig Count Rises: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 728 for the week ended May 20, higher than the prior-week count of 714. The current national rig count is higher than the year-ago level of 455.
The number of onshore rigs for the week ended May 20 totaled 709, higher than the prior-week count of 695. In offshore resources, 18 rigs were operating, in line with the prior-week count.
U.S. Oil Rig Count Grows: Oil rig count was 576 for the week ended May 20, higher than the prior-week figure of 563. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is up from the year-ago figure of 356.
U.S. Natural Gas Rig Count Up: Natural gas rig count of 150 was higher than the prior-week figure of 149. The count of rigs exploring the commodity is higher than the prior-year week's tally of 99. Per the latest report, the number of natural gas-directed rigs is 90.1% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 25 units, in line with the prior-week count. 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 703 compared favorably with the prior-week level of 689.
Gulf of Mexico (GoM) Rig Count Flat: GoM rig count was 17 units, all being oil-directed. The count was flat with the prior-week number.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig tally of 342, higher than the prior-week count of 334. Thus, the basin's oil drilling rig count increased after the count was in line in the past two weeks.
Outlook
The West Texas Intermediate crude price is trading higher than the $110-per-barrel mark, reflecting a massive improvement from the past year. Higher oil prices will pave the way for rig additions despite a slowdown in drilling activities as upstream players mainly focus on stockholder returns rather than boosting output.
Meanwhile, investors may keep a close eye on energy stocks like Whiting Petroleum Corp. and Continental Resources, Inc. The companies are expected to benefit from the current healthy oil price scenario.
Whiting Petroleum is a leading upstream energy company and the top producer of crude oil in North Dakota. With oil prices improving rapidly, Whiting Petroleum is expected to continue generating handsome cash flows while maintaining a healthy balance sheet.
Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past seven days. Looking at the price chart, WLL has gained 81.5% over the past year, outpacing the 64.3% rise of the composite stocks belonging to the industry. WLL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past seven days. Considering the price chart, Continental Resources — currently carrying a Zacks Rank #2 (Buy) — has gained 87.2% over the past year, outpacing the 64.3% rise of the composite stocks belonging to the industry.
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The Boeing Company (BA) : Free Stock Analysis Report
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Baker Hughes Company (BKR) : Free Stock Analysis Report
Whiting Petroleum Corporation (WLL) : Free Stock Analysis Report
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