At his annual policy speech at Jackson Hole in Wyoming on Friday, Federal Reserve Chair Jerome Powell clarified the central bank’s utmost priority to control inflation by increasing interest rates. He also warned that the Fed would keep pushing ahead with its hawkish stance until inflation moves closer to the target of 2%.
Powell’s speech triggered a massive sell-off in the stock market on the last day of the previous week, with broad market indices including the S&P 500, Dow Jones, and Nasdaq Composite registering sharp intraday declines.
Despite the Fed’s focused and seemingly drawn-out monetary policy tightening and geopolitical tensions keeping stock markets subdued, momentum stocks Birchcliff Energy Ltd. (BIREF), Amplify Energy Corp. (AMPY), and Friedman Industries, Incorporated (FRD) are likely to keep defying gravity for the rest of 2022.
Birchcliff Energy Ltd. (BIREF)
BIREF is an intermediate oil and natural gas company headquartered in Calgary, Canada. It is engaged in acquiring, developing, developing, and producing natural gas, light oil, condensate, and natural gas liquids in Western Canada.
BIREF’s total corporate sales came in at C$433.35 million ($332.25 million) for the fiscal 2022 second quarter ended June 30, 2022, up 113.7% year-over-year. The company’s adjusted fund flow during the same period increased 216.6% year-over-year to a record C$285.53 million ($218.92 million).
In addition, its net income to common shareholders during the quarter increased 387.7% year-over-year to C$213.85 million ($163.96 million). This translated to C$0.81 per basic common share, an increase of 406.3% over the previous-year quarter.
BIREF’s annual revenue is expected to increase 64.5% from the previous year to $1.12 billion in the current year. Analysts expect the company’s revenue for the current quarter to come in at $324.52 million, registering an increase of 62% year-over-year.
Over the past year, the stock has gained 126.5% to close the last trading session at $9.13. It is currently trading above its 50-day and 200-day moving averages of $7.39 and $6.58, respectively.
BIREF’s POWR Ratings justify the optimism surrounding it. The company has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
BIREF has an A grade for Momentum and a B for Growth and Quality. Within the B-rated Energy – Oil & Gas industry, it is ranked #5 out of 97 stocks. Click here to see the additional POWR Ratings for Value, Stability, and Sentiment for BIREF.
Amplify Energy Corp. (AMPY)
AMPY operates as an independent oil and natural gas company. It acquires, develops, exploits, and produces oil and natural gas properties in the United States. The company has total estimated proven reserves of nearly 121.2 million barrels of oil equivalent and 2,417 gross producing wells.
On August 3, Martyn Willsher, AMPY’s President and CEO, said, “The Company will continue to focus on enhancing operational performance and asset investments to take advantage of the strong commodity price environment and bolster free cash flow.”
AMPY’s total revenues came in at $121.78 million for the fiscal 2022 second quarter ended June 30, 2022, up 9.3% sequentially. Its net income came in at $29.22 million, compared to a loss of $48.61 million in the previous quarter. Moreover, the company’s EPS came in at $0.73, compared to a loss per share of $1.27 in the prior quarter.
Over the past year, the stock has gained 104.3% to close the last trading session at $7.66. It is currently trading above its 50-day and 200-day moving averages of $6.72 and $5.60, respectively.
AMPY has an overall B rating, equating to a Buy in our POWR Ratings system. It has an A grade for Momentum and a B for Value and Quality. It is ranked #22 among 97 stocks in the Energy – Oil & Gas industry.
Beyond what is stated above, we’ve also rated AMPY for Sentiment, Stability, and Growth. Get all AMPY ratings here.
Friedman Industries, Incorporated (FRD)
FRD is involved in the manufacturing and processing of pipes and other steel products and their distribution across the United States. The company operates through two segments: Coil products and Tubular products.
In May, FRD announced its expansion by acquiring two high-quality, strategically located facilities from Plateplus, Inc. The company also acquired the steel inventory and customer relationships at two additional locations of Plateplus. With an expanded geographic presence, scale, and processing capabilities, FRD could position itself as a leading North American steel service center.
FRD’s net revenue increased 126.2% year-over-year to $285.23 million for the fiscal year ended March 31, 2022. Its earnings from operations grew 79.7% over the previous year to $28.26 million, while its net earnings improved 23.1% to $14.07 million during the same period. The company’s EPS for the fiscal year rose 25.2% year-over-year to $2.04.
The stock has gained 12% over the past month and 40% over the past six months to close the last trading session at $10.98. It is currently trading above its 50-day and 200-day moving averages of $9.08 and $9.44, respectively.
FRD’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our POWR Ratings system. The stock also has an A grade for Momentum, Value, and Growth and a B for Quality. Within the A-rated Steel industry, it is ranked #9 of 33 stocks.
Click here to get FRD’s ratings for Sentiment and Stability.
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BIREF shares were unchanged in after-hours trading Monday. Year-to-date, BIREF has gained 78.62%, versus a -14.60% rise in the benchmark S&P 500 index during the same period.
About the Author: Santanu Roy
Having been fascinated by the traditional and evolving factors that affect investment decisions, Santanu decided to pursue a career as an investment analyst. Prior to his switch to investment research, he was a process associate at Cognizant. With a master's degree in business administration and a fundamental approach to analyzing businesses, he aims to help retail investors identify the best long-term investment opportunities. More...
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