In a flashback to 2008, the small exploration energy companies are seeing rising earnings as crude prices jump. Gulfport Energy Corporation (GPOR) still has value even though its shares have soared off the March 2009 low. It is trading at 14.7x forward estimates.
Gulfport Energy is an independent oil and natural gas exploration company headquartered in Oklahoma City with exploration properties in the Louisiana Gulf and the Permian Basin in West Texas.
It also is active in the Alberta Oil Sands through a 25% interest in the Grizzly Oil Sands ULC.
Gulfport Energy Surprised 3 out of the Last 4 Quarters
Gulfport last reported earnings on Nov 4, when third quarter results beat the Zacks Consensus Estimate by a penny. Earnings per share were 28 cents.
Production of oil and gas rose 27% to 527,010 barrels of oil equivalent (BOE) compared to the year ago quarter and was 13% higher than the second quarter of 2010. Average realized price of Oil Equivalents was $63.14 compared to $53.34 in the third quarter of 2009.
2010 Zacks Consensus Estimate Rises in Last 30 Days
2 estimates have been revised higher for the full year in the last month pushing the Zacks Consensus Estimate up a penny to $1.03 per share. This is earnings growth of 87.6%.
The good times are expected to continue to roll in 2011 with further earnings growth of 76.6%.
The 2011 Zacks Consensus Estimate has jumped to $1.82 from $1.74 in the last month as 2 estimates moved higher in that period.
Gulfport Energy is scheduled to report earnings on Mar 10.
Solid Fundamentals
In addition to an attractive forward P/E, the company also has a stellar 1-year return on equity of 26.4%.
Gulfport is a Zacks #2 Rank (buy) stock.
Shares are now even higher than when I last reviewed the company on Aug 15, 2008, just after crude hit all-time highs.
This Week’s Value Zacks Rank Buy Stocks
The strength of the global economic recovery is evident in the manufacturers. Innophos Holdings Inc. (IPHS), which produces specialty phosphates, recently reported fourth quarter sales that jumped 31%. This Zacks #1 Rank (strong buy) is cheap, trading at just 10.9. Read the full article.
Looking for a value stock that pays a juicy dividend? TAL International Group Inc. (TAL) just reported earnings that surprised on the Zacks Consensus and it said it was raising its already hefty dividend by 12.5%. This Zacks #1 Rank (strong buy) trades at just 13.2x forward estimates. Read the full article.
Stanley Black & Decker, Inc. (SWK) has combined two famous names into one company with double digit earnings growth expected in 2011 and 2012. This Zacks #1 Rank (strong buy) recently announced it was raising its dividend 21%. Read the full article.
The trajectory is up for Snap-on Inc. (SNA). Earnings and sales have risen year over year each of the last four quarters. Despite shares trading at 2-year highs, this Zacks #1 Rank (strong buy) still has value, with a forward P/E of 14.5. Read the full article.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.
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