The market rebounded from Tuesday’s steep slide on Wednesday, with the Dow Jones Industrial Average gaining 0.7%, while the S&P 500 and Nasdaq Composite added around 0.4% and 0.2%, respectively. Furthermore, stock futures climbed as investors monitored headlines that indicated Ukraine and Russia could be headed for fresh negotiations.

In addition, Wall Street isn’t convinced that the Fed will have the same resolve to move ahead with the interest rate hikes as anticipated, following Russia’s invasion of Ukraine. Bets on the probability that the Fed will announce a 0.5 percentage point interest rate hike when it meets later this month have fallen to less than 8% from 34% a week ago. However, the near-term scenario remains highly uncertain.

Therefore, we think it could be wise to invest in GeoPark Limited (GPRK), Transportadora de Gas del Sur S.A. (TGS), and USA Truck, Inc. (USAK), which have demonstrated solid momentum this year and could continue their run irrespective of the market volatility.

GeoPark Limited (GPRK)

Based in Santiago, Chile, GPRK explores, develops, and produces oil and gas reserves in Chile, Colombia, Brazil, Argentina, Peru, and Ecuador. GPRK is currently ranked as the third-largest oil operator in Colombia, and the first private oil and gas producer in Chile. It has a market capitalization of $895.78 million.

Last month, GPRK announced its first hydrocarbon discovery in the Perico block in the Oriente basin in Ecuador. This discovery, which is already in production, includes 15-20 exploration wells and should support GPRK’s growth and expansion strategies.

GPRK’s total revenues increased 77.4% year-over-year to $174 million in its fiscal third quarter, ended Sept. 30, 2021. Its operating profit rose 185.3% from the prior-year quarter to $81.30 million. Its profit for the period came in at $37 million, indicating an increase of 960.5% year-over-year. In addition, its cash flow from operating activities grew 9.2% from its year-ago value to $49.90 million.

The Street expects the company’s revenues to be $187 million in its fiscal fourth quarter, ended Dec. 31, 2021, indicating an increase of 75.3% year-over-year. And the company’s EPS is expected to increase 187.7% year-over-year to $0.50 in the same period.

The stock has gained 24.8% in price over the past six months and 30% year-to-date to close yesterday’s trading session at $14.88. Also, the stock is trading above its 50-day moving average of $13.18 and 200-day moving average of $13.01.

GPRK’s sound fundamentals are reflected in its POWR Ratings. GPRK has an overall A rating, equating to Strong Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

GPRK also has an A grade for Sentiment and Momentum and a B grade for Growth and Quality. It is ranked #7 out of the 47 stocks in the A-rated Foreign Oil & Gas industry.

In addition to the POWR Ratings grades highlighted, one can see the GPRK’s Stability and Value ratings here.

Transportadora de Gas del Sur S.A. (TGS)

Buenos Aires, Argentina-based TGS provides natural gas transportation and distribution services. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Other Services; and Telecommunications. TGS transports approximately 60% of the gas consumed in the country through more than 5,700 miles of gas pipeline. It has a market capitalization of $846.10 million. 

TGS’ total comprehensive income increased 644.5% year-over-year to AR$4.42 billion ($41.11 million) in its fiscal third quarter, ended Sept. 30, 2021, while its earnings per share increased 651.3% year-over-year to AR$5.86.

Analysts expect TGS’s EPS to increase 700% year-over-year to $0.24 in the quarter ended Dec. 31, 2021.

Shares of TGS have gained 19.6% in price over the past year and 26.6% year-to-date to close yesterday’s trading session at $5.62. TGS is currently trading above its 50-day and 200-day moving averages of $4.77 and $4.91.

TGS has an overall A rating, which translates to Strong Buy in our proprietary rating system. It also has an A grade for Momentum and a B grade for Value, Stability, Sentiment, and Quality. It is ranked #3 in the Foreign Oil & Gas  industry.

To get all TGS ratings, click here.

USA Truck, Inc. (USAK)

With a market capitalization of $224.35 million, USAK in Van Buren, Ark., is a truckload carrier in the United States, Mexico, and Canada. The company operates in two segments, Trucking, and USAT Logistics.

In January,  USAK announced that it had signed a Letter of Intent (LOI) for an initial purchase of 10 Nikola Tre BEV trucks from Thompson Truck Centers, a member of the Nikola Corporation (NKLA) sales and service dealer network. “The partnership with Nikola and Thompson advances our critically important ESG initiatives and further demonstrates our commitment to sustainability now and in the future,” stated James Reed, President and CEO of USA Truck Inc.

For its fiscal fourth quarter, ended Dec. 31, 2021, USAK’s operating revenues increased 26.4% year-over-year to $200.85 million, while its operating income increased 69.2% year-over-year to $16.47 million. Its adjusted net income stood at $12.41 million, up 100.8% from its year-ago value. The company’s adjusted EPS increased 100% year-over-year to $1.38.

The $185.55 million consensus revenue estimate for the current quarter, ended March 31, 2022, indicates a 17.1% increase year-over-year. Also, its EPS is expected to increase 79.1% year-over-year to $0.77 in the current quarter. Furthermore, it surpassed the Street’s EPS estimates in three out of the trailing four quarters.

Over the past year, USAK’s shares have gained 61.5% in price to close yesterday’s trading session at $25.22. The stock has gained 26.9% year-to-date. It is also trading above its 50-day and 200-day moving averages of $20.99 and $17.52, indicating an uptrend.

It’s no surprise that USAK has an overall A rating, which equates to Strong Buy in our proprietary POWR Ratings system. USAK also has an A grade for Momentum and Sentiment and a B grade for Growth and Value. Among the 22 stocks in the Trucking Freight industry, it is ranked #2.

Click here to view additional ratings for Quality and Stability.

Note that USAK is one of the few stocks handpicked by our Chief Value Strategist, Steve Reitmeister, currently in the POWR Value portfolio. Learn more here.

GPRK shares were trading at $15.50 per share on Wednesday afternoon, up $0.62 (+4.17%). Year-to-date, GPRK has gained 35.37%, versus a -7.54% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...

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