Market Cap: $17 billion
Expected 5-year EPS Growth: 38%
Big-time E&P firm Continental Resources (CLR) has been soaring, and doesn’t look like it will run out of energy any time soon.
During the past five years, Continental averaged an annual EPS gain of nearly 90%. Meanwhile, since the depths of the recession, its stock has increased sixfold, putting it currently near all-time highs.
This year, earnings are expected to improved by almost 69% — less than the last half-decade, but hardly anything to sneeze at — while next year should tack another 33% improvement. Over the next half-decade, that will smooth out to annualized growth of 38% — that dwarfs the expected annual growth of 11% and 13% from sector-mates Whiting Petroleum (WLL) and Noble Energy (NBL), respectively.
Much of that growth likely will come from last year’s $650 million purchase of properties in the booming Bakken Shale — a region that a recent U.S. Geological Survey report suggests might actually hold nearly double the energy originally thought. Plus, operating costs have been on the way down there; Continental has lowered its costs by about 10% year-over-year, according to Daily Finance.
No wonder CLR’s mean analyst price target gives the stock over 13% upside.