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4 Reasons to Add Penn Virginia (PVAC) to Your Portfolio


Estimates for Penn Virginia Corporation PVAC have been revised upward over the past 30 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved up 0.2% and 1.3% to $10.37 and $15.95, respectively.

Also, the Zacks Consensus Estimate for earnings for 2018 and 2019 reflects year-over-year surge of 260.1% and 53.8%, respectively.

Penn Virginia is an oil and gas company. It engaged in exploration, development and production of oil, NGLs and natural gas. The company operates primarily in Eagle Ford Shale in South Texas and Oklahoma. It is headquartered in Houston, TX.

Let’s focus on the factors that make Penn Virginia an attractive stock now.

Price Appreciation: The stock, sporting a Zacks Rank #1 (Strong Buy), has gained 106.5% in a year, outperforming the industry’s growth of 17.7%.

VGM Score: The stock has a favorable VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with an impressive VGM Score of A or B coupled with a top Zacks Rank offer the best investment bets.

Earnings Results & Surprise History: The company reported earnings of $2.46 per share in second-quarter 2018, which beat the Zacks Consensus Estimate of $2.44 by 0.8%. Penn Virginia has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the last four reported quarters, the average being 14.96%. The consecutive beats reflect the company’s operational excellence.

Production Growth: The company’s production increased more than 78% in first-half 2018 and the company is on course to achieve another 30% growth in production in the second half. The expected production for 2018 is in the range of 22,000 to 24,000 barrel of oil equivalent per day (Boe/d) compared with 10,353 Boe/d in 2017, indicating year-over-year growth of 120%.

Other Stocks to Consider

Some other top-ranked stocks from the same space are Northern Oil and Gas, Inc. NOG, Energen Corp. EGN, and Centennial Resource Development, Inc. CDEV, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Oil and Gas pulled off an average quarter positive surprise of 138.54% in the last four quarters. The Zacks Consensus Estimate for 2018 EPS moved up 12.3% in the past 60 days to 55 cents.

Energen pulled off an average quarter positive surprise of 23.71% in the last four quarters. The Zacks Consensus Estimate for 2018 EPS moved up 2.1% in the past 60 days to $3.38.

Centennial Resource Development pulled off an average quarter positive surprise of 24.27% in the last four quarters. The Zacks Consensus Estimate for 2018 EPS moved up 5.6% in the past 60 days to 95 cents.

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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

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Zacks Investment Research
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