Robust occasions throughout the worldwide financial spectrum proceed to prevail. Geopolitical tensions, provide chain points, record-high inflation and muted demand are a few of the headwinds plaguing the capital markets.
In such a state of affairs, an knowledgeable’s steerage can assist traders pocket higher returns.
In in the present day’s Knowledgeable Highlight piece, we convey to you an analyst, with a eager deal with the oil and gasoline sector, whose picks have generated constant returns over and above the index.
Primarily based out of Washington DC, Nitin Kumar is a Senior Fairness Analysis Analyst at Wells Fargo Securities. Kumar is a market veteran with nearly 20 years of expertise within the capital markets. He has additionally labored with high business leaders like BNP Paribas, Merrill Lynch, Credit score Suisse and Deutsche Financial institution Securities.
Kumar accomplished his MBA from the distinguished Columbia Enterprise College. He’s additionally a Chartered Monetary Analyst (CFA) constitution holder.
Rating on TipRanks
Kumar has a powerful rating of 5 out of seven,945 analysts within the TipRanks universe. The TipRanks Star Rating relies on an knowledgeable’s success fee, the common return generated, and statistical significance that provides larger weightage to a better variety of transactions or suggestions made by an knowledgeable.
With a hit fee of 92% on TipRanks, Kumar has loved a median return of 65.1% over the previous yr. Additional, the analyst has outperformed the S&P 500 and the sector, recording an alpha of 69.3% and 56%, respectively.
In keeping with TipRanks, Kumar’s most worthwhile decide has been Antero Sources Corp (AR) on August 23, 2021. The analyst continues to take care of his place on the inventory. Up to now, he has garnered a return of 254.5% on AR.
Now, let’s have a more in-depth have a look at a few of Kumar’s high picks, which have helped him in producing such benchmark beating returns.
Primarily based out of Midland, TX, Diamondback Vitality is engaged in hydrocarbon exploration.
The corporate lately posted spectacular first-quarter outcomes. Revenues for the quarter got here in at $2.4 billion, up 103.4% from the earlier yr. Earnings of $5.20 per share jumped a whopping 126.1% from the year-ago quarter.
Additional, the corporate’s dividend yield of three.01% is above the sector common of two.79%.
Just lately, Kumar reiterated a Purchase ranking on the inventory with a value goal of $200, which means upside potential of 31% from present ranges.
With a hit fee of 100%, the analyst has rated the inventory a complete of eight occasions. Up to now, he has generated a median revenue of 44.9% on the inventory.
Denver-based Ovintiv is a hydrocarbon exploration and manufacturing firm.
Just lately, it reported its first-quarter outcomes. Whereas the corporate’s revenues fell 7% year-over-year to $1.97 billion, its earnings skyrocketed 97.3% from the identical quarter final yr.
Though the corporate lately raised its quarterly dividend by 25%, its dividend yield of 1.29% continues to be lower than the sector common of two.79%.
Just lately, Kumar reiterated a Purchase ranking on the inventory with a value goal of $68, which means upside potential of 20.5% from present ranges.
With a hit fee of 100%, Kumar has rated the inventory a complete of seven occasions. Up to now, he has generated a median revenue of 60.1% on the inventory.
With rising oil costs not anticipated to chill down anytime quickly, Kumar’s picks within the power sector might be considered by traders as investible choices.
The TipRanks Knowledgeable Heart brings collectively the opinions and transaction actions of the world’s high monetary consultants, serving to traders of their funding journey.
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