Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. This quarterly report represents an earnings surprise of 17.14%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $1.48 per share when it ...

Selected Financial and Operating Items Adjusted EBITDA Adjusted Free Cash Flow MATADOR RESOURCES COMPANY REPORTS RECORD SECOND QUARTER 2024 RESULTS AND INCREASES FULL-YEAR 2024 PRODUCTION GUIDANCE Full-Year 2024 Guidance Update | --- | --- | --- | --- | |--------------------------|-------------------------------------------|-----------------------------------------------|----------------| | Production | Prior Full-Year 2024 Guidance Range | New Full-Year 2024 Guidance (1) Range | (2) Difference | | Total, B ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, particularly Matador Resources (MTDR) and SM Energy (SM), which are currently considered undervalued based on various financial metrics [2][8]. Company Analysis: Matador Resources (MTDR) - MTDR has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for investment [4]. - The stock's P/E ratio is 7.10, significantly lower than the industry average of 10.32, suggesting it may be undervalued [4]. - MTDR's Forward P/E has fluctuated between 5.63 and 9.96 over the past 52 weeks, with a median of 7.53 [4]. - The P/B ratio for MTDR is 1.66, compared to the industry average of 2.48, further indicating its attractiveness [5]. - Over the past year, MTDR's P/B ratio has ranged from 1.50 to 2.13, with a median of 1.77 [5]. - MTDR's P/CF ratio stands at 4.39, which is lower than the industry's average of 7.83, reinforcing its undervalued status [6]. - The P/CF ratio has varied between 3.97 and 5.42 over the past year, with a median of 4.63 [6]. Company Analysis: SM Energy (SM) - SM is rated as a 1 (Strong Buy) stock with an A grade for Value, indicating strong investment potential [7]. - The P/B ratio for SM is 1.40, which is also lower than the industry average of 2.48, suggesting it is undervalued [7]. - Over the past year, SM's P/B ratio has fluctuated between 1.14 and 1.64, with a median of 1.40 [7]. Conclusion - Both Matador Resources and SM Energy are highlighted as strong value stocks, likely undervalued based on their earnings outlook and key financial metrics [8].

Matador Resources (MTDR) closed the last trading session at $61.65, gaining 8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $79.58 indicates a 29.1% upside potential. The mean estimate comprises 12 short-term price targets with a standard deviation of $7.22. While the lowest estimate of $62 indicates a 0.6% increase from the current price level, the most optimistic analyst expec ...

Company Performance - Matador Resources (MTDR) has returned 5.7% year-to-date, outperforming the average gain of 5% in the Oils-Energy sector [4] - The Zacks Consensus Estimate for MTDR's full-year earnings has increased by 10.7% over the past three months, indicating improved analyst sentiment [4] - Matador Resources holds a Zacks Rank of 2 (Buy), suggesting it is poised to outperform the broader market in the near term [3] Industry Context - Matador Resources is part of the Oil and Gas - Exploration and Production - United States industry, which consists of 36 individual stocks and currently ranks 154 in the Zacks Industry Rank [6] - The Oil and Gas - Exploration and Production - United States industry has gained an average of 5.5% year-to-date, indicating that Matador Resources is performing better than its industry peers [6] - Another notable stock in the Oils-Energy sector is Plains All American Pipeline (PAA), which has increased by 22.4% year-to-date and also holds a Zacks Rank of 2 (Buy) [5][7]

Core Viewpoint - Matador Resources (MTDR) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4][10] Earnings Estimate Revisions - Analysts have increased their earnings estimates for Matador by 16.1% over the past three months, indicating a positive outlook for the company's performance [6][13] - The Zacks rating system effectively tracks changes in earnings estimates, which correlates strongly with near-term stock price movements [5][11] Zacks Rating System - The Zacks rating system maintains a balanced approach with an equal proportion of 'buy' and 'sell' ratings across over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [7][12] - The upgrade of Matador to a Zacks Rank 1 places it in the top 5% of stocks based on earnings estimate revisions, suggesting potential for price appreciation [8][10] Future Earnings Potential - For the fiscal year ending December 2024, Matador is expected to earn $7.89 per share, reflecting a 16.5% increase from the previous year [13]

Group 1 - Matador Resources Company (MTDR) is a leading upstream player with a strong presence in oil and natural gas shale, expecting earnings growth of 16.5% in 2024 and 18.6% in 2025 [1] - The price of West Texas Intermediate crude has reached $80 per barrel, which is favorable for exploration and production activities, likely aiding MTDR in increasing production volumes [2] - Matador Resources has entered into a $1.91 billion agreement to expand its operations in the Delaware Basin, projected to close in late Q3 2024, with an expected production exceeding 180,000 barrels of oil equivalent per day [3] Group 2 - The combination of high commodity prices and expectations for increased production is anticipated to positively impact Matador Resources' bottom line [4] - Other top-ranked energy companies include Vitesse Energy Inc, ProPetro Holding Corp, and Vista Energy SAB de CV, with Vitesse Energy holding a Zacks Rank 1 and the others ranked 2 [6] - Vitesse Energy has interests in 6,932 productive wells in the Bakken region, ensuring a solid production outlook if crude prices remain favorable [7]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, focusing on traditional valuation metrics to uncover undervalued stocks with profit potential [1] Valuation Metrics - Matador Resources (MTDR) has a Price-to-Book (P/B) ratio of 1.54, which is lower than the industry average of 2.34, indicating potential undervaluation [2] - MTDR's P/B ratio has fluctuated between a high of 2.13 and a low of 1.53 over the past 12 months, with a median of 1.77 [2] - The company also has a Price-to-Cash Flow (P/CF) ratio of 4.06, significantly lower than the industry average of 7.37, suggesting it may be undervalued based on cash flow [6] - MTDR's P/CF ratio has ranged from a high of 5.42 to a low of 3.50 in the past year, with a median of 4.63 [6] - The Forward Price-to-Earnings (P/E) ratio for MTDR is 7.17, compared to the industry average of 9.97, further indicating potential undervaluation [7] - Over the past year, MTDR's Forward P/E has varied from a high of 9.96 to a low of 5.63, with a median of 7.53 [7] Investment Grade - Matador Resources currently holds a Zacks Rank of 2 (Buy) and an A rating for Value, highlighting its attractiveness as a value stock [7] - The strong Value grade for MTDR is supported by its favorable earnings outlook, reinforcing the notion that it is likely undervalued at present [3]

Upon completion, Matador's pro forma holdings will exceed 190,000 net acres in the Delaware Basin, boosting production to more than 180,000 barrels of oil and natural gas equivalent (BOE) per day and increasing proved reserves to over 580 million BOE. According to the company, the deal is expected to generate forward one-year Adjusted EBITDA of approximately $425-$475 million, offering a favorable purchase price multiple of 4.2x for the upstream assets. Mr. Foran expressed confidence in the acquisition's ab ...

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