ConocoPhillips (NYSE:COP) has worked hard to distinguish itself from other oil companies over the past few years by shifting its focus from growing production to increasing shareholder value. That led it on a path to shed high-cost assets so that it could slim down to a company that could thrive at lower oil prices.
This strategy has worked remarkably well. That's why shares are up more than 50% over the past year compared to about a 15% gain for the average oil stock as measured by the Vanguard Energy ETF. However, despite that dramatic outperformance, CFO Don Wallette stated on the company's most recent quarterly conference call that "we think our stock is well undervalued and has a lot of upside to it." He gave two reasons why the company thinks its stock is a buy.
Image source: Getty Images.
Cheap cash flowOne of the factors ConocoPhillips' CFO looks at when valuing the company's stock is its ability to expand its cash flow margins in an environment like the one it's in today. In the CFO's view, cash flow can expand rapidly at current oil prices. However, the market isn't giving the company any credit for this growth potential:
Top Undervalued Stocks To Buy Right Now: Hexcel Corporation(HXL)
Advisors' Opinion:- [By Lee Samaha]
It's well known that both Boeing (NYSE:BA) and Airbus (NASDAQOTH:EADSY) are ramping up their production of aircraft in response to multi-year backlogs and ongoing strength in orders. Each is a highly investable companies in its own right -- Boeing, in particular, looks well positioned to grow cash flow and earnings. But what about investing in one of their suppliers, like advanced composite technology company Hexcel (NYSE:HXL)? Let's take a look at the factors that could make that company attractive for investors.
- [By Logan Wallace]
Trexquant Investment LP purchased a new stake in shares of Hexcel Co. (NYSE:HXL) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund purchased 5,590 shares of the aerospace company’s stock, valued at approximately $371,000.
- [By Logan Wallace]
Xact Kapitalforvaltning AB lifted its position in shares of Hexcel Co. (NYSE:HXL) by 51.5% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 11,174 shares of the aerospace company’s stock after acquiring an additional 3,800 shares during the quarter. Xact Kapitalforvaltning AB’s holdings in Hexcel were worth $722,000 at the end of the most recent quarter.
- [By Lee Samaha]
Advanced materials are loosely defined as those designed with enhanced properties that improve on traditionally used materials. A broader definition includes materials seeing increased demand due to advanced technologies. For example, if you want to reduce the weight of aircraft (while also increasing strength) then Hexcel Corp. (NYSE: HXL) advanced composites are going to come in handy. Similarly, if you believe in the future of electric vehicles then the lithium produced by Albemarle Corp. (NYSE: ALB) (used in batteries) will surely come into high demand in the future. Moreover, if you want to invest in companies that provide technology to materials processors then high-performance laser manufacturer IPG Photonics Corp. (NASDAQ: IPGP) is well worth a look. Here's the investment case for all three.
Top Undervalued Stocks To Buy Right Now: Aluminum Corporation of China Ltd(ACH)
Advisors' Opinion:- [By Max Byerly]
Aluminum Corp. of China Limited (NYSE:ACH) has been assigned an average recommendation of “Hold” from the seven ratings firms that are covering the stock, Marketbeat reports. One analyst has rated the stock with a sell recommendation, three have issued a hold recommendation, two have issued a buy recommendation and one has assigned a strong buy recommendation to the company.
- [By Ethan Ryder]
Aluminum Corp. of China Limited (NYSE:ACH) has been assigned a consensus recommendation of “Hold” from the eight research firms that are currently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell rating, three have given a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company.
- [By Ethan Ryder]
Shares of Aluminum Corp. of China Limited (NYSE:ACH) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $10.70 and last traded at $10.71, with a volume of 2367 shares trading hands. The stock had previously closed at $11.00.
Top Undervalued Stocks To Buy Right Now: Intec Pharma Ltd.(NTEC)
Advisors' Opinion:- [By Ethan Ryder]
Media stories about Intec Pharma (NASDAQ:NTEC) have been trending somewhat positive on Wednesday, according to Accern Sentiment. The research group ranks the sentiment of press coverage by monitoring more than twenty million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Intec Pharma earned a coverage optimism score of 0.18 on Accern’s scale. Accern also assigned news stories about the biotechnology company an impact score of 45.6707447165993 out of 100, meaning that recent press coverage is somewhat unlikely to have an effect on the stock’s share price in the immediate future.
- [By Max Byerly]
Get a free copy of the Zacks research report on Intec Pharma (NTEC)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Joseph Griffin]
Get a free copy of the Zacks research report on Intec Pharma (NTEC)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Top Undervalued Stocks To Buy Right Now: Civeo Corporation(CVEO)
Advisors' Opinion:- [By Shane Hupp]
Civeo (NYSE:CVEO) was downgraded by research analysts at ValuEngine from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
- [By Logan Wallace]
Civeo Corp (NYSE:CVEO)’s share price was up 5.8% during trading on Tuesday . The stock traded as high as $3.53 and last traded at $3.48. Approximately 766,001 shares changed hands during mid-day trading, an increase of 1% from the average daily volume of 754,849 shares. The stock had previously closed at $3.29.
- [By Steve Symington]
Still, several individual companies easily outran the broader market. Read on to learn why shares of ManTech International (NASDAQ:MANT), Civeo (NYSE:CVEO), and Deutsche Bank (NYSE:DB) each climbed higher today.
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