Zacks Top 4 Picks are in our Sweet 16 - March 19

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dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Zacks Top 4 Picks are in our Sweet 16 - March 19

Post by dan_s »

March 19, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Diamondback Energy, Inc. FANG, Matador Resources Company MTDR, Pioneer Natural Resources Company PXD and EOG Resources, Inc. EOG.

They have raised all four to Strong Buy. As I have posted here recently, MTDR is getting closest to my Fair Value Estimate.

Read details: https://finance.yahoo.com/news/zacks-an ... 10167.html
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Zacks Top 4 Picks are in our Sweet 16 - March 19

Post by dan_s »

Zacks is also bullish on Ovintiv (OVV)

https://finance.yahoo.com/news/ovintiv- ... 12615.html

I finished my review of the updated profile on OVV last night and it will be sent to all EPG members today via email. It is up on the EPG website now.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Zacks Top 4 Picks are in our Sweet 16 - March 19

Post by dan_s »

Stifel's Take
Macro & Portfolio Strategy -
The cyclical Value vs. Growth recovery is intact and should last several years - Barry B. Bannister -
"We like Value over Growth (Small Cap, International equity also align with Value) for a cyclical recovery. Value is breaking out after a -51% decline vs. Growth the 3.75 years to Sep-1, 2020. Supporting factors include a leveling dollar, gradual reflation, a rising 10Y yield, a topping out of stock market valuation and penetration measures, rising U.S. broad money supply and most of all the way in which commodities signal rising Value vs. Growth, with 260 years of commodity cycles since 1760 supporting a commodity upturn from depression-like commodity lows seen in Apr-2020. This is a "cyclical" commodity recovery not a "supercycle" (those last 10 years), in our view, but the cycle does help Value out-perform Growth by 40% cumulatively over ~3.75 years 4Q20-3Q24."

This is bullish for all of the companies in our three model portfolios because they were grossly oversold in 2020 and most of them are still trading below net asset value if you assume oil prices will average more than $60/bbl in 2021 and 2022. Their year-end reserve reports based on SEC commodity prices (under $40 for oil and under $2 for natural gas) are at least 50% under-stated. Take a look at Talos Energy's Q4 earnings report for a table of how understated their NAV is.
Dan Steffens
Energy Prospectus Group
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