These seven stocks have positive catalysts for future growth, above industry average profit margins, below industry average P/E ratios, and excellent price performance over the last 52 week period. These are bullish indicators regarding a stock's possible future performance. A robust profit margin is a trait of notable name. Moreover, most of these stocks are trading well below consensus analysts’ estimates; several have recent upgrades and positive analyst comments.
Nonetheless, this is only the first step in finding winners for your portfolio. Now that we have cut the wheat from the chaff, let's take a closer look to distinguish the driving factors behind these remarkable statistics and ensure the stories are intact.
Below is a table with detailed statistics regarding each company’s current summary information followed by a brief review of each company, detailed current analysts' estimates and up/downgrade activity followed by a chart of the company's key statistics.
Company Summary Statistics
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Schlumberger Limited (NYSE:SLB) and its subsidiaries supply technology, integrated project management, and information solutions to the oil and gas industry worldwide.
Schlumberger recently reported second-quarter 2011 revenue of $9.62 billion versus $8.72 billion in the first quarter of 2011, and $5.94 billion in the second quarter of 2010. Income from continuing operations attributable to Schlumberger, excluding charges, was $1.18 billion—an increase of 22% sequentially and 45% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges, was $0.87 versus $0.71 in the previous quarter, and $0.68 in the second quarter of 2010.
The company is trading below analysts' estimates. Schlumberger has a median price target of $105 by 31 brokers and a high target of $160. The last up/downgrade activity was on Mar 8, 2011, when Dahlman Rose initiated coverage on the company with a Buy rating.
Halliburton Company (NYSE:HAL) provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide.
Halliburton recently announced net income for the second quarter of 2011 was $747 million, or $0.81 per diluted share, excluding employee separation costs of $8 million, after-tax, or $0.01 per diluted share. Reported net income for the second quarter of 2011 was $739 million, or $0.80 per diluted share. This compares to net income for the first quarter of 2011 of $511 million, or $0.56 per diluted share. The first quarter of 2011 results were negatively impacted by $46 million, after-tax, or $0.05 per diluted share, related primarily to reserving certain assets as a result of political sanctions in Libya. Net income for the second quarter of 2010 was $480 million, or $0.53 per diluted share.
The company is trading below analysts' estimates. Halliburton has a median price target of $70 by 31 brokers and a high target of $93. The last up/downgrade activity was on May 16, 2011, when Global Hunter Securities initiated coverage on the company with an Accumulate rating.
National Oilwell Varco, Inc. (NYSE:NOV) designs, constructs, manufactures, and sells systems, components, and products used in oil and gas drilling and production; provides oilfield services and supplies; and distributes products, and provides supply chain integration services to the upstream oil and gas industry worldwide.
National Oilwell and Ameron International Corporation (NYSE:AMN) have entered into an agreement under which NOV will acquire Ameron in an all cash transaction that values Ameron at approximately $772 million. Under the agreement, Ameron's stockholders would receive $85.00 per share in cash in return for each of the approximately 9.1 million shares outstanding. The boards of directors of NOV and Ameron have unanimously approved the transaction, which is subject to customary closing conditions, including the approval of holders of at least a majority of Ameron's outstanding shares. Closing could occur as early as the 4th quarter of 2011.
The company is trading below analysts' estimates. National Oilwell has a median price target of $95 by 24 brokers and a high target of $103. The last up/downgrade activity was on Mar 8, 2011, when Dahlman Rose initiated coverage on the company with a Buy rating.
Diamond Offshore Drilling, Inc. (NYSE:DO) operates as an offshore oil and gas drilling contractor worldwide.
Diamond Offshore recently reported net income for the second quarter of 2011 of $266.6 million, or $1.92 per share on a diluted basis, compared with net income of $224.4 million, or $1.61 per share on a diluted basis, in the same period a year earlier. Revenues in the second quarter of 2011 were $889.5 million, compared with revenues of $822.6 million for the second quarter of 2010.
The company is trading below analysts' estimates. Diamond Offshore has a median price target of $75 by 25 brokers and a high target of $90. The last up/downgrade activity was on Jun 24, 2011, when FBR Capital upgraded the company from Market Perform to Outperform.
Helmerich & Payne, Inc. (NYSE:HP) engages in the contract drilling of oil and gas wells in the United States and internationally.
Helmerich & Payne recently announced the Company has entered into agreements to build and operate 12 additional FlexRigs*(R). These rigs will be built under multi-year term contracts with eight exploration and production companies, and are scheduled to be completed and begin operations in the U.S. during fiscal 2012. The names of the customers and other terms were not disclosed. The Company does not expect these contracts to have a significant impact on its previously announced fiscal 2011 capital expenditures estimate.
The company is trading on par with analysts' estimates. Helmerich & Payne has a median price target of $73 by 21 brokers and a high target of $82. The last up/downgrade activity was on Apr 29, 2011, when Canaccord Genuity downgraded the company from Buy to Hold.
Rowan Companies, Inc. (NYSE:RDC) provides onshore and offshore oil and gas contract drilling services in the United States and internationally.
Rowan recently announced it has entered into a purchase and sale agreement with Ensign United States Drilling (S.W.) Inc., a subsidiary of Ensign Energy Services Inc. to sell Rowan's land drilling division for $510 million in cash, plus working capital of approximately $30 million. The Agreement is subject only to regulatory approval, which the company expects to obtain within 60 days
The company is trading below analysts' estimates. Rowan has a median price target of $47 by 32 brokers and a high target of $57. The last up/downgrade activity was on Jul 20, 2011, when Dawson James downgraded the company from Strong Buy to Buy.
Atwood Oceanics, Inc., (NYSE:ATW) together with its subsidiaries, engages in offshore drilling, and the completion of exploratory and developmental oil and gas wells.
Atwood recently announced that one of its subsidiaries has been awarded a contract by a subsidiary of Noble Energy, Inc. for the Atwood Aurora. With contract commencement expected in October 2011, the award has an estimated firm duration of 240 days plus an option well with an estimated duration of approximately 40 days. The day rate for work offshore Cameroon will be approximately $126,000 and for work offshore Equatorial Guinea, the day rate will be approximately $134,000. With the award of this contract, the firm contractual commitments for the Atwood Aurora are expected to extend through May 2012.
The company is trading on par with analysts' estimates. Atwood has a median price target of $47 by 15 brokers and a high target of $65. The last up/downgrade activity was on Apr 29, 2011, when Canaccord Genuity initiated coverage on the company with a Buy rating.
Information was gathered from CNBC, Yahoo Finance and respective company websites. Based on the current market conditions I would suggest scaling in to any position to reduce risk. I believe all these stocks are currently undervalued and provide significant opportunities for long term investors.