Small-Cap Growth Portfolio Changes - July 24

[dan_s]

I will be updating all of the small-cap forecast models and posting them to the EPG website today. I am working them up in reverse alphabetical order. TALO and SOI have already been posted to the website home page.

SOI has an A++ safety rating and it pays a decent dividend. As the active rig count goes up, demand for SOI's equipment goes up. I expect them to report strong Q2 results that should beat First Call's EPS forecast. TipRank's price target is $14.33, which has not changed since early May. SOI is in much better shape heading into Q3 and I think there is a good chance they raise their dividend. My valuation is $17.50.

Talos Energy (TALO) does have hurricane risk, but I have lowered my Q3 production forecast to account for it. TALO has a lot of "Exploration Upside" because they have some world class prospects in the Gulf of Mexico.