Range Resources
Independent oil and gas producer Range Resources Corp. (NYSE: RRC) has posted a 12-month share price increase of 11.5%. Three months ago, the stock had risen by more than 50%.
As with its much larger rival Occidental, lower natural gas, natural gas liquids (NGLs) and crude prices put a serious dent in revenue. Range produced about 1.52 billion cubic feet of natural gas per day in the fourth quarter, nearly 108,000 barrels of NGLs per day, and 6,700 barrels a day of oil. Earlier this month, the company reported that its proved reserves rose by 2% in 2022 to 1.7 trillion cubic feet equivalent.
As a group, analysts are cautious. Of 26 brokerages covering the stock, 14 have Hold ratings and nine have a Buy or Strong Buy rating. At a share price of around $25.00, the stock’s upside potential based on a median price target of $31.50 is 26%. At the high price target of $48.00, the upside potential is 92%.
For the fourth quarter, Range Resources is expected to report revenue of $655.43 million, down 14.0% sequentially and by 64.7% year over year. Adjusted EPS are forecast at $1.22, down 11.2% sequentially and 27.1% lower year over year. For the full 2022 fiscal year, analysts are looking for EPS of $4.99, up almost 147%, and revenue of $3.53 billion, up 20.5%.
Range Resources stock trades at 5.1 times expected 2022 EPS, 7.5 times estimated 2023 earnings of $3.36 and 6.1 times estimated 2024 earnings of $4.15 per share. The stock’s 52-week range is $22.06 to $37.44, and the company pays a dividend of $0.32 (yield of 1.3%). Total shareholder return for the past 12 months was 12.14%.
Zoom Video
Over the past 12 months, shares of Zoom Video Communications Inc. (NASDAQ: ZM) have dropped by about 37.9%. That includes a share price boost of 10.1% since the beginning of the year.
The company recently announced a cut of 15% (about 1,300) to its workforce. CEO Eric Yuan cut his salary for this year by 98% and will not collect his fiscal 2023 bonus payments. Maybe this will help Zoom get some of its mojo back: Mercedes-Benz announced Thursday that Zoom video conferencing will be available in the company’s 2024 E-class cars. If this were a good idea, Elon Musk would already have thought of it. Oh, wait …
Analysts remain unconvinced. Of 34 brokerages covering the stock, 24 have a Hold rating and nine have Buy or Strong Buy ratings. At a share price of around $75.00, the upside potential based on a median price target of $85.00 is 13.3%. At the high price target of $105.00, the upside potential is 70%.
Fiscal fourth-quarter revenue is forecast at $1.1 billion, down 0.1% sequentially but up 2.8% year over year. Adjusted EPS are pegged at $0.82, down 23.7% sequentially and by 36.4% year over year. For the full 2023 fiscal year that ended in January, current estimates call for EPS of $3.95, down 22.2%, on sales of $4.38 billion, up 6.9%.
Zoom Video’s stock trades at 18.9 times expected 2023 EPS, 20.3 times estimated 2024 earnings of $3.67 and 19.2 times estimated 2025 earnings of $3.88 per share. The stock’s 52-week range is $63.55 to $136.00. Zoom does not pay a dividend, and total shareholder return for the past year is negative 37.9%.
Originally published at 24/7 Wall St.
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