Tough times across the global economic spectrum continue to prevail. Geopolitical tensions, supply chain issues, record-high inflation and muted demand are some of the headwinds plaguing the capital markets.
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In such a situation, an expert’s guidance can help investors pocket better returns.
In today’s Expert Spotlight piece, we bring to you an analyst, with a keen focus on the oil and gas sector, whose picks have generated consistent returns over and above the index.
Based out of Washington DC, Nitin Kumar is a Senior Equity Research Analyst at Wells Fargo Securities. Kumar is a market veteran with almost two decades of experience in the capital markets. He has also worked with top industry leaders like BNP Paribas, Merrill Lynch, Credit Suisse and Deutsche Bank Securities.
Kumar completed his MBA from the prestigious Columbia Business School. He is also a Chartered Financial Analyst (CFA) charter holder.
Ranking on TipRanks
Kumar has an impressive ranking of five out of 7,945 analysts in the TipRanks universe. The TipRanks Star Ranking is based on an expert’s success rate, the average return generated, and statistical significance that gives higher weightage to a higher number of transactions or recommendations made by an expert.
With a success rate of 92% on TipRanks, Kumar has enjoyed an average return of 65.1% over the past year. Further, the analyst has outperformed the S&P 500 and the sector, recording an alpha of 69.3% and 56%, respectively.
According to TipRanks, Kumar’s most profitable pick has been Antero Resources Corp (AR) on August 23, 2021. The analyst continues to maintain his position on the stock. So far, he has garnered a return of 254.5% on AR.
Now, let’s have a closer look at some of Kumar’s top picks, which have helped him in generating such benchmark beating returns.
Diamondback Energy (NASDAQ: FANG)
Based out of Midland, TX, Diamondback Energy is engaged in hydrocarbon exploration.
The company recently posted impressive first-quarter results. Revenues for the quarter came in at $2.4 billion, up 103.4% from the previous year. Earnings of $5.20 per share jumped a whopping 126.1% from the year-ago quarter.
Further, the company’s dividend yield of 3.01% is above the sector average of 2.79%.
Recently, Kumar reiterated a Buy rating on the stock with a price target of $200, which implies upside potential of 31% from current levels.
With a success rate of 100%, the analyst has rated the stock a total of eight times. So far, he has generated an average profit of 44.9% on the stock.
Ovintiv Inc. (NYSE: OVV)
Denver-based Ovintiv is a hydrocarbon exploration and production company.
Recently, it reported its first-quarter results. While the company’s revenues fell 7% year-over-year to $1.97 billion, its earnings skyrocketed 97.3% from the same quarter last year.
Although the company recently raised its quarterly dividend by 25%, its dividend yield of 1.29% is still less than the sector average of 2.79%.
Recently, Kumar reiterated a Buy rating on the stock with a price target of $68, which implies upside potential of 20.5% from current levels.
With a success rate of 100%, Kumar has rated the stock a total of seven times. So far, he has generated an average profit of 60.1% on the stock.
Conclusion
With rising oil prices not expected to cool down anytime soon, Kumar’s picks in the energy sector can be taken into consideration by investors as investible options.
The TipRanks Expert Center brings together the opinions and transaction activities of the world’s top financial experts, helping investors in their investment journey.
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