Drill Your Way to Profits With Ensco (ESV)
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Price: $8.27 --0%
Rating Summary:
19 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
19 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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If you're looking for a play in the oil & gas sector, look no further than offshore contract drilling company Ensco plc (NYSE: ESV).
Ensco plc (NYSE: ESV) is one of the most loved stocks on Wall Street, receiving a total of 16 analyst upgrades over the past 6 months, according to data at Ratings Insider. What have shares done during that time? Down 3%.
The U.K.-based driller is trading at a reasonable valuation of 14x this year's EPS estimates and 9x next year's. Peer Noble Corp. (NYSE: NE) trades at 21x this year's and 10x next year's. Most analysts believe the stock should be trading at a premium to peers.
Analysts at Dahlman Rose estimate Ensco's net asset value is $67.50, which suggests that shares currently trading at a 22 percent discount to its real value.
Ensco recently closed its acquisition of Pride International. The deal is expected to create cost synergies of $50 million+. Integration of Pride is moving fast and the company should be able to see some of these synergies soon.
Ensco is big in the jack-up market, which may be close to an inflection point. In addition Ensco has great leverage to deepwater, the strongest market. Analysts estimate by 2012, deepwater will be 65 percent of revenue.
While Wall Street might love Ensco plc, investors haven't discovered it yet -- creating a great opportunity for you.
Ensco plc (NYSE: ESV) is one of the most loved stocks on Wall Street, receiving a total of 16 analyst upgrades over the past 6 months, according to data at Ratings Insider. What have shares done during that time? Down 3%.
The U.K.-based driller is trading at a reasonable valuation of 14x this year's EPS estimates and 9x next year's. Peer Noble Corp. (NYSE: NE) trades at 21x this year's and 10x next year's. Most analysts believe the stock should be trading at a premium to peers.
Analysts at Dahlman Rose estimate Ensco's net asset value is $67.50, which suggests that shares currently trading at a 22 percent discount to its real value.
Ensco recently closed its acquisition of Pride International. The deal is expected to create cost synergies of $50 million+. Integration of Pride is moving fast and the company should be able to see some of these synergies soon.
Ensco is big in the jack-up market, which may be close to an inflection point. In addition Ensco has great leverage to deepwater, the strongest market. Analysts estimate by 2012, deepwater will be 65 percent of revenue.
While Wall Street might love Ensco plc, investors haven't discovered it yet -- creating a great opportunity for you.
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