Earthstone Energy, Inc., an oil and natural gas development and production company, operates in the up-stream segment of the oil and natural gas industry in the United States. Its asset portfolio includes the Midland Basin of west Texas and the Eagle Ford trend of south Texas. As of December 31, 2017, the company operated 91 gross Eagle Ford wells; and 12 gross Austin Chalk wells, as well as had 79,976 thousand barrels of oil equivalent (MBOE) of total proved reserves, 19,961 MBOE of proved developed reserves, and 60,015 MBOE of proved undeveloped reserves. Earthstone Energy, Inc. was founded in 1969 and is headquartered in The Woodlands, Texas.
Annual EPS Growth – Companies with annual earnings growth of more than 20% are more likely to become leaders in up trending markets. While 20% Annual EPS growth is the minimum you should look for, don’t be afraid to seek even better results. Studies have shown that the greatest winners in the past 30 years had an average 30% annual EPS growth rate when they started their strong up trends. You also can look for three straight years of rising EPS growth, with an average of at least 25%. These performance results often imply that a company is growing fast even if the general economy is slowing down or even in recession.
The current Annual EPS Growth for Earthstone Energy is 100% which is greater than the 30% average found is strong trending, fundamentally sound companies.
Quarterly EPS Growth – Outstanding earnings growth in the most recent quarters can be the single most important trait that identifies winners before they start their major price advances. Generally, the bigger the earnings growth, the better. Specifically, look for a company’s earnings per share up at least 25-30% vs. the year-ago level in the most recent quarter or two. Gains of 50%, 100% or more are typical of strong market leaders even before they make their huge price moves. There’s really nothing magic about this connection. Successful companies generate the strongest profit gains, regardless of the economic cycle. Even during periods when corporate profits are weak in general, you still find standouts that achieve massive earnings growth.
The current Quarterly EPS Growth for Earthstone Energy is 600% which is greater than the 25% average found is strong trending stocks even during or before huge price moves.
Quarterly Sales growth – A company’s annual and
quarterly rate of increase in revenues (sales). A measure of growth and
success as long as it is accompanied by an equally strong rate of
increase in earnings per share. You want to see both in a potential
investment. A company’s quarterly EPS gain should be supported by an
increase in revenue (sales) of at least 25% or at least by an
acceleration in sales growth in the past few quarters. You also should
watch out for earnings growth that comes amid falling sales. Companies
with declining revenue often boost their EPS results through layoffs or
other cost cuts, especially in an uncertain economic environment. But
this isn’t a sustainable approach, and it’s definitely not as desirable
as profit gains that come from higher revenue. Recent quarterly sales
results are more critical when it comes to researching stocks.
The current Quarterly Sales Growth for Earthstone Energy is 24.03% which is less than the 25% average found is strong trending stocks.
Trade Setup
| Buy Target $6.80 | Sell Target 1 $8.40 |
| Trailing Stop 20% | Sell Target 2 $10.23 |
