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Here's Why You Should Invest In Continental Resources Now

Published 06/15/2018, 04:48 AM
Updated 07/09/2023, 06:31 AM

On Jun 14, Continental Resources, Inc. (NYSE:CLR) was upgraded to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

The Zacks Consensus Estimate for 2018 earnings per share has been revised upward from $2.69 to $3.15 over the last 30 days. The Zacks Consensus Estimate for 2019 earnings rose to $3.56 from $3.08.

We expect the upstream energy player to record earnings growth of 517.7% and 13.1% in 2018 and 2019, respectively. This adds to its already impressive earnings profile. The company surpassed the Zacks Consensus Estimate for earnings in each of the last three quarters, the average positive surprise being 80.5%.

Continental Resources has a strong footprint in some of the premier oil and gas producing properties in the United States. The plays include Oklahoma’s STACK and SCOOP resources along with Bakken acres across North Dakota and Montana.

In the United States, Bakken is considered to be among the largest onshore crude producing resources. The company generates one of the finest grade oil in the world from the Bakken play. Also, STACK is among the premier resources in the domestic market where drilling rigs are consistently gathering.

The core resource basewill likely help Continental Resources achieve its yearly production growth target of 17% to 24% and free cashflow guidance of $800-$900 million.

Continental Resources’ pricing chart is also impressive as the stock has rallied 94.5% over the past year, outperforming the 16.4% collective gain of the stocks belonging to the industry.

Other Stocks to Consider

A few other stocks in the energy space that warrant a look are Anadarko Petroleum Corp. (NYSE:APC) , Eclipse Resources Corp. (NYSE:ECR) and Wildhorse Resource Development Corp. (NYSE:WRD) . While Anadarko carries a Zacks Rank #2 (Buy), Eclipse and Wildhorse sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

We expect Anadarko Petroleum to witness year-over-year earnings growth of 229.6% in 2018.

Eclipse is expected to record revenue growth of 13.5% through 2018.

Wildhorse will likely see year-over-year earnings growth of 309.3% in 2018.

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Anadarko Petroleum Corporation (APC): Free Stock Analysis Report

Eclipse Resources Corporation (ECR): Free Stock Analysis Report

Continental Resources, Inc. (CLR): Free Stock Analysis Report

Wildhorse Resource Development Corporation (WRD): Free Stock Analysis Report

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Zacks Investment Research

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