Yahoo Finance Here's Why You Should Add Eni SpA (E) Stock to Portfolio
We issued an updated research report on Eni SpA E on Apr 10, 2017. The integrated energy company has an excellent track record of exploration operations. Moreover, the firm expects oil and gas production in 2017–2020 to grow 3%.
The company currently carries a Zacks Rank #2 (Buy), implying that the stock will outperform the broader U.S. equity market over the next one to three months.
Over the last three years, Eni discovered 3.4 billion BOE of oil and gas. Of these, 1.1 billion BOE were discovered in 2016 alone. On Apr 5, 2017, the company declared a new gas and condensates discovery in the Gamma Prospect, off the coast of Libya.
We believe that Eni’s constant efforts to expand its upstream operations in Cyprus, Egypt, Vietnam, Indonesia, Pakistan and Kenya will go a long way in generating profitable growth in the future. Moreover, project start-ups, inputs from big projects in Algeria, Iraq, Australia, Russia as well as Egypt, along with its strategic position in non-conventional gas, are expected to augment volumes going forward.
Eni’s strategic plan for 2017–2020 calls for investments on high value projects with fast returns and the development of conventional projects. This apart, Eni has been increasing dividend. The company currently has a dividend yield of a solid 3.98%, which makes its near-term growth prospects bright.
All these positives are reflected in the company’s stock price improvement for the last six months. During the aforesaid period, Eni’s shares gained 10.4%, whereas he Zacks categorized Oil & Gas-International Integrated industry registered a minimal increase of 2.2%.
Other Stocks to Consider
Other players in the energy sector include Antero Resources Corporation AR, Concho Resources Inc. CXO and Cobalt International Energy Inc. CIE. Antero Resources sports a Zacks Rank #1 (Strong Buy), while Concho Resources and Cobalt International carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Resources’ earnings beat the Zacks Consensus Estimate in all of the last four quarters with an average positive earnings surprise of 239.10%.
Concho Resources posted average positive earnings surprise of 310.74% in the last three quarters.
For 2017, Cobalt is expected to witness year-over-year earnings growth of 78.06%.
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ENI S.p.A. (E): Free Stock Analysis Report
Cobalt International Energy, Inc. (CIE): Free Stock Analysis Report
Concho Resources Inc. (CXO): Free Stock Analysis Report
Antero Resources Corporation (AR): Free Stock Analysis Report
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