Opinions
The Panic-Proof Portfolio (Stockchase Research)
Northern Oil & Gas, Inc.
NOG-N
TOP PICK
Aug 08, 2024
Stock price when the opinion was issued
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Premium contentPremium contentPremium contentNOG recently reported its 21st consecutive quarter of positive cash flow -- allowing for a payout ratio of under 33% of cash flow to cover its robust dividend yield. It trades at 7x earnings, 1.1x book and supports a ROE of 29%. We recommend setting a stop-loss at $21, looking to achieve $36 -- upside potential of 30%. Yield 6.1%
(Analysts’ price target is $36.79)Premium contentWe reiterate this predominately oil producing company in the Bakken as a TOP PICK. Recently reported earnings showed a 13% increase in production (a new corporate record) and a 41% increase in free cash flow. It trades at 8x earnings, 1.2x book and supports a 29% ROE. Its good dividend is backed by a payout ratio under 33% of cash flow. We recommend trailing up the stop (from $21) to $23, looking to achieve $37 -- upside potential of 23%. Yield 5.8%
(Analysts’ price target is $36.79)
NOG recently reported record cash flow and production of which 57% is oil based. Management just announced it has exercised its option to increase Uinta basin holdings. It trades at 7x earnings, under 2x book and supports a 32% ROE. Its dividend is backed by a payout ratio under 30% of cash flow. We recommend setting a stop-loss at $32, looking to achieve $50 -- upside potential of 30%. Yield 4.2%
(Analysts’ price target is $50.21)