2 Momentum Stocks That Are Too Cheap to Ignore

: BRY | Berry Petroleum Corporation News, Ratings, and Charts

BRY – The Fed is expected to keep hiking rates well into 2023; consequently, the broader market might remain under pressure. However, value stocks have been gaining traction and are expected to perform well in the following year. So, fundamentally sound momentum stocks Berry Corporation (BRY) and Gran Tierra Energy (GTE), which seem to be trading at a discount, could be worth your attention now. Keep reading….

Despite the cooling inflation in October and November, the Fed is expected to keep hiking rates well into 2023 as inflation is far away from the Fed’s target level. Such persistent monetary tightening is expected to keep markets under pressure for an extended time. Moreover, benchmark indices have witnessed substantial losses in 2022. The S&P 500 has lost 19.9% year-to-date.

Amid this, value stocks have been gaining traction, and LPL Financial expects value stocks to perform well in 2023. Investors’ interest in value stocks is evident from the iShares S&P 500 Value ETF’s (IVE) 3.1% gains over the past three months. Furthermore, JPMorgan Chase & Co. (JPM) expects value investing to gain more popularity in the coming term.

Therefore, quality momentum stocks Berry Corporation (BRY) and Gran Tierra Energy Inc. (GTE), which seem to be trading at a discount, could be ideal buys ahead of 2023.

Berry Corporation (BRY)

Independent upstream energy company BRY develops and produces conventional oil reserves in the western United States. It operates in two segments, Development and Production; and Well Servicing and Abandonment.

On November 2, 2022, Trem Smith, BRY’s Board Chair and CEO, said, “We are on track to return to our shareholders the equivalent of our current market capitalization of approximately $700 million in just three-plus years.”

BRY’s forward EV/Sales of 1.30x is 28.1% lower than the industry average of 1.80x. Its forward Price/Sales of 0.82x is 37.3% lower than the industry average of 1.30x.

BRY’s total revenues and other came in at $376.45 million for the third quarter that ended September 30, 2022, up 162.5% year-over-year. Its adjusted net income came in at $45.52 million, up 294.5% year-over-year. Also, its adjusted EPS came in at $0.55, up 292.9% year-over-year.

Street expects BRY’s revenue to increase 49.6% year-over-year to $815.13 million in 2022. Its EPS is expected to rise 684% year-over-year to $1.96 in 2022. It has gained 6.4% year-to-date and 9% over the past year to close the last trading session at $7.96.

BRY has an overall A rating, which equates to a Strong Buy in our proprietary POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

In addition, it has an A grade for Value and Momentum and a B for Growth and Sentiment. BRY is ranked #2 out of 92 stocks in the B-rated Energy – Oil & Gas industry. Click here to see BRY’s ratings for Stability and Quality.

Gran Tierra Energy Inc. (GTE)

Headquartered in Calgary, Canada, GTE, and its subsidiaries explore and produce oil and gas properties in Colombia and Ecuador.

On November 1, 2022, Gary Guidry, GTE’s President, and CEO, said, “We look forward to finishing 2022 on a strong note and are excited about our 2023 development and exploration capital programs and ongoing share and bond buybacks.”

In terms of forward EV/Sales, GTE’s 0.95x is 47.6% lower than the industry average of 1.80x. Its forward Price/Sales of 0.38x is 70.9% lower than the industry average of 1.30x.

GTE’s oil sales came in at $168.40 million for the third quarter that ended September 30, 2022, up 24.4% year-over-year. Its net and comprehensive income came in at $38.66 million, up 10.4% year-over-year, while its EPS remained constant at $0.10. Moreover, its adjusted EBITDA increased 48.2% year-over-year to $121.24 million.

GTE’s revenue is expected to increase 54.2% year-over-year to $730.42 million in 2022. Its EPS is expected to rise 440% year-over-year to $0.54 in 2022. The stock has gained 14.1% year-to-date and 19.9% over the past year to close the last trading session at $0.86.

GTE’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system.

GTE has an A grade for Value, Momentum, and Sentiment and a B for Quality. Within the A-rated Foreign Oil & Gas industry, it is ranked #11 out of 43 stocks. Click here for the additional POWR Ratings for Growth and Stability for GTE.

BRY shares were unchanged in premarket trading Tuesday. Year-to-date, BRY has gained 9.16%, versus a -19.06% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
BRYGet RatingGet RatingGet Rating
GTEGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

2024 Stock Market Outlook

The time to think about the 2024 stock market is now. Will it be a bull or bear? And where does the S&P 500 (SPY) end the year? And what are the top picks to outperform? Investment veteran Steve Reitmeister does his level best to answer all these questions. Just read on below...

3 Financial Stocks to Boost Your Portfolio's Bottomline

The consumer financial sector is experiencing a transformative wave of technological advancements fueled by the rise of fintech companies and digital banking. Amid this swiftly evolving landscape, three consumer finance stocks, Mastercard (MA), Noah Holdings (NOAH), and EZCORP, Inc. (EZPW) could be ideal buys this month. Read more…

POWR Income Stock of the Week: Ternium SA (TX)

The Federal Trade Commission has been on a crusade this year to stop mergers in their tracks with little regard to the size of the merger or the industry it was taking place in. But, with major setbacks being delivered by the courts the mergers and acquisitions markets are thawing, and one industry set to consolidate is the steel industry. This may be a boon for all the steel players involved, and one under the radar income play steel producer is Ternium.

3 Travel Stocks to Watch With Holiday Gains Potentially in the Pipeline

The travel industry is witnessing a surge in cruise market interest, driven by evolving consumer preferences and sustainability considerations. Hence, travel stocks Carnival Corporation (CCL), Royal Caribbean (RCL), and Lindblad Expeditions (LIND) might be sound watchlist additions before the holidays. Read more…

VERY Healthy Stock Rotation Underway

The S&P 500 (SPY) is putting the finishing touches on a strong 2023 campaign. This is the 4th straight year the large cap index has outperformed small and mid caps. Gladly there are signs this is going to change which is a very healthy sign for the longevity of this bull run. 43 year investment pro Steve Reitmeister explains why in his latest commentary that includes insights on this top 11 picks for today’s market. Read on below for more...

Read More Stories

More Berry Petroleum Corporation (BRY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All BRY News