The Steady Performer: Noble Energy (NYSE: NBL)

Noble Energy Inc. stock is currently trading at $35.88 per share. The stock has a 52-week high of $46.93 per share and a 52-week a low of $23.77 per share. The market capitalization at current prices is $15.38 billion, and the stock has no applicable price earnings ratio at present with an EPS of -6.49. The 1-year target estimate price of the stock is $41.73. *Analysts currently rate the stock at 2.3 on a rating scale of 1.0 (strong buy) to 5.0 (strong sell). The high price target of the stock is $54 per share and the low price target of the stock is $35 per share. In 2016, there have been mixed upgrades/downgrades for the stock, starting with the following:

• On 21 January 2016, Nomura upgraded the stock from a neutral to a buy
• On 28 March 2016, Tudor Pickering downgraded the stock from a buy to a hold
• On 25 May 2016, Sterne Agee CRT upgraded the stock from a neutral to a buy rating

Noble Energy Major Shareholders

Poor Performance Expected

Over the past 3 months, there has been a shift in sentiment among investors from a strong buy rating to a buy rating, and an increasing number of investors are also holding the stock as opposed to selling it, and rating it as an underperform asset. For the current quarter in June 2016, analysts are anticipating an EPS of -0.34, with a high of -0.13 and a low of -0.48. One year ago, the earnings per share was recorded at 0.26. For the current quarter in June 2016, the average estimate is $852.16 million with a high of $993 million and a low of $660 million. The sales growth is estimated to increase by 16.70%. In June 2015, the earnings history surprise was 333.30% for the quarter.

*Wall Street analysts have given the stock a rating of 2.3, which is none to positive for the stock on a rating scale of 1.0 to 5.0. According to a group of 17 analysts, 14 have issued a hold rating on the stock and 4 have gone for an outperform rating. For 2016, analysts are anticipating that Noble Energy Inc. would deliver earnings of $-1.29 per share, with a low of $-1.67 per share and a high of $-0.73 per share. Over the next 5 years, growth is expected to be in the range of -3.55%, while the average for its competitors is in the region of 9.07%. Some analysts believe that the price of the stock can shoot as high as $54 per share, and if this comes to pass, it would be a 50% premium over the current price of $36.54 per share. All of this is seen against a looming Fed rate hike and a possible strengthening of the USD. With the USD expected to appreciate based on the possibility of another rate hike, the future performance of Noble Energy Inc. remains uncertain.

The Cockroach Effect?

When Noble Energy Inc. reported its last financial results, the earnings were delivered at $0.26 per share, and analysts were anticipating EPS of $0.06. The 333.30% earnings surprise totally rocked the industry and an upsurge took place. There is concern among analysts that the cockroach effect may come into play here. This simply means that when negative results are forecast, many more negative results may develop as a result of it. As it stands (December 31, 2015), Noble Energy Inc. held 1,421 million barrels of proven oil reserves and its projects are primarily in the following regions: the Eastern Mediterranean, the West Coast of Africa (offshore), DJ Basin, Eagle Ford Shale, Marcellus Shale and Permian Basin.