1 Stock That Deserves Your Attention Today

: UNTC | Unit Corp. News, Ratings, and Charts

UNTC – Oil prices have retreated from their highs but can potentially soar in the near term, driven by macroeconomic factors. Oil & gas stock Unit Corporation (UNTC) has gained more than 85% this year. And considering its solid fundamentals, it could be worth your attention. Read on….

Unit Corporation (UNTC) explores, acquires, and develops oil and natural gas properties. The company operates through its three broad segments: Oil and Natural Gas; Contract Drilling; and Mid-Stream. 

In June, UNTC announced that it had ended its agreement with Tudor, Pickering, Holt & Co. (TPH) as an advisor for the previously announced process to sell up to all of its oil and gas properties and reserves. The company also announced an increase from $50 million to $100 million in the aggregate value of shares of common stock that it might repurchase under its stock repurchase program.

Oil prices have retreated sharply from their highs, but there might still be a case for buying oil stocks. According to Bill Smead, chief investment officer at Smead Capital Management, oil prices might rise once again on factors such as the United States having to replace 180 million barrels of strategic reserves and China’s recovery from Covid.

Over the past year, UNTC’s stock has gained 181.7%. It has gained 87.3% year-to-date and 14.6% over the past month. The stock has gained 0.8% intraday to close its last trading session at $60.50.

Here are the factors that could affect UNTC’s performance in the near term:

Solid Financials

For the fiscal second quarter ended June 30, UNTC’s total revenues increased marginally year-over-year to $134.55 million. Income from operations rose 79.8% from the prior-year quarter to $70.16 million. Net income attributable to UNTC and net income attributable to UNTC per common share came in at $80.09 million and $7.82, up substantially from their negative year-ago values.

Low Valuations

In terms of its trailing-12-month P/E, UNTC is trading at 5.93x, 42.6% lower than the industry average of 10.32x. The stock’s trailing-12-month PEG multiple of 0.01 is 87.4% lower than the industry average of 0.06. In terms of its trailing-12-month EV/EBITDA, it is trading at 2.50x, 70% lower than the industry average of 8.35x.

Wide Profit Margins

UNTC’s trailing-12-month net income margin and levered FCF margin of 15.40% and 13.61% are 61.4% and 136.7% higher than their respective industry averages of 9.54% and 5.75%. The stock’s trailing-12-month ROE, ROTC, and ROA of 52.31%, 25.56%, and 25.76% are 237%, 297.4%, and 360.8% higher than their respective industry averages of 15.53%, 6.43%, and 5.59%.

POWR Ratings Reflect Promising Prospects

UNTC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

UNTC has a Momentum grade of A, in sync as the stock is trading higher than its 50-Day Moving Average of $54.60 and its 200-Day Moving Average of $50.25. The stock also has an A grade for Value and Quality, consistent with its low valuations and broad profitability margins.

In the 97-stock Energy – Oil & Gas industry, it is ranked #5. The industry is rated B.

Click here to see the additional POWR Ratings for UNTC (Growth, Stability, and Sentiment).

View all the top stocks in the Energy – Oil & Gas industry here.

Bottom Line

Although oil prices retreated, they could rise once again, which might benefit UNTC. The stock has gained significantly this year, supported by the industry tailwinds. And, given its solid fundamentals, I think the stock might be worth buying now.

How Does Unit Corporation (UNTC) Stack Up Against its Peers?

While UNTC has an overall POWR Rating of A, one might consider looking at its industry peers, Whitecap Resources Inc. (SPGYF) and Valero Energy Corporation (VLO), which also have an overall A (Strong Buy) rating.


UNTC shares were unchanged in premarket trading Monday. Year-to-date, UNTC has gained 87.31%, versus a -10.46% rise in the benchmark S&P 500 index during the same period.


About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
UNTCGet RatingGet RatingGet Rating
SPGYFGet RatingGet RatingGet Rating
VLOGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Unit Corp. (UNTC) News View All

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