The selling pressure regarding Northern Oil and Gas, Inc. shares could subside shortly. In fact, the support area that is currently being tested around 18.51 USD has come into play and could, at least in the short term, keep the downside pressure at bay.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company's Refinitiv ESG score, based on a relative ranking of the company within its sector, comes out particularly poor.
Strengths
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For the past twelve months, EPS forecast has been revised upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Over the past four months, analysts' average price target has been revised upwards significantly.
Weaknesses
● Low profitability weakens the company.
● The company is in debt and has limited leeway for investment
● Over the past twelve months, analysts' opinions have been revised negatively.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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Northern Oil and Gas, Inc. is a real asset company that focuses on acquiring and investing in non-operated minority working and mineral interests in the hydrocarbon producing basins within the contiguous United States. Its principal business is crude oil and natural gas exploration, development, and production with operations in the United States. Its 272,251-acre portfolio is distributed across the Williston, Permian, and Appalachia Basins. Its portfolio comprises about 272,251 acres of low-breakeven lands with over 9,765 wells. Diversified by basin and across commodity type, its wells are operated by over 100 public and private operators. It primarily engages in oil and natural gas exploration and production by participating on a proportionate basis alongside third-party interests in wells drilled and completed in spacing units that include its acreage. In addition, it acquires wellbore-only working interests in wells. It also owns the Utica and Northern Delaware Basin assets.