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.
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.
Want More Great Investing Ideas?
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
|Ticker||POWR Rating||Industry Rank||Rank in Industry|
|BRY||Get Rating||Get Rating||Get Rating|
|GTE||Get Rating||Get Rating||Get Rating|