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.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
