Parsley Energy Inc. (PE) is Waving the Bull Flag

Parsley Energy Inc. (PE) is Waving the Bull Flag


Many stocks have been testing new highs in 2020, and one of the most notable is Parsley Energy Inc. (PE). Currently, PE is trading at $13.23 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $13.06.

To add more color to this target, the company’s high over the last year is $20.80 and the low is $3.92. Over the last 52 weeks, PE is down -36.39% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, PE reported a profit of $-4.86 billion. Parsley Energy Inc. also saw revenues decrease to $564.8 million. In addition, PE has free cash flow of $101.93 million as of 03-2020 The company’s EBITDA came in at -$4.58 billion which compares well with its peers.

PE Return on Equity (ROE) is -59.20%, and its Return on Assets is -33.10%. All told, it is clear that, PE needs to be on your watchlist.

About Parsley Energy Inc.

If readers are unfamiliar, Parsley Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, exploration, production, and sale of crude oil and natural gas properties in the Permian Basin in west Texas and Southeastern New Mexico. As of December 31, 2019, its acreage position consisted of 191,179 net acres, including 149,615 net acres in the Midland Basin and 41,564 net acres in the Delaware Basin; and operated 558.9 net acres of the horizontal wells and 723.1 net acres of the vertical wells, as well an estimated proved oil, natural gas, and natural gas liquid reserves of 592.3 MMBoe. The company was founded in 2008 and is headquartered in Austin, Texas.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PE has a short ratio of 2.69 and outstanding shares of 366.06M.

Company Outlook

PE has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 13.08 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -8.49. Parsley Energy Inc. PE also noted assets of $8.61 billion at the end of the last quarter. Investors should also keep an eye on sector updates as PE has historically followed its peers on positive news.

All told, Parsley Energy Inc. PE has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PE represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Parsley Energy Inc. PE is now commanding a market cap of 5.04B and a float of 299.01M. PE is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in PE, either long or short, and we have not been compensated for this article.