Purchase Noble Before Q4 Ends For Long-Term Gains

Current shareholders should hold Noble Energy (NBL) long-term; interested investors should consider 2012 as an opportune entry point to initiate a position on this E&P. Noble has comparable metrics to its peers, an adequate dividend for shareholders, and is currently focused on improving its global portfolio by exploring more assets overseas. This stock should realize capital appreciation as it increases its assets overseas, oil crude prices continue to stabilize, and natural gas prices and demands increase abroad.

Apache (APA), Anadarko Petroleum (APC) and Marathon Oil (MRO) are most comparable to Noble Energy as they share mutual interests in exploration prospects. Noble’s price is around 26 times earnings, 4.2 times sales, and 2.1 time its book value. These are the highest price ratios among these E&Ps. Noble’s current ratio is around 0.95, and its debt-to-equity ratio is around 0.57. Noble’s annualized dividend is around $0.91 per share.

Noble’s EPS is around $3.62, decreasing 38.2% in 2012, and projected to increase 34.4% in 2013. Apache’s $8.35 EPS and 35.6% EPS growth in 2012 are the highest among these E&Ps. Anadarko’s -$2.71 and 449.6% EPS decline are the worst among these E&Ps. Noble’s ROE is around 8.9%, its operating margin is around 17.5% and its profit margin is around 16.8%. Noble’s sales have increased 5.06% over the last 5 years. In contrast, Marathon Oil’s sales have declined 25.2% over the past 5 years.

Noble’s float short is around 1.4% while its short ratio is around 2.4. Its beta is the lowest among these E&Ps and is the closest to one. Its average trading volume is around 1.02 million, also the lowest among these E&Ps. Marathon’s 6.8 million average trading volume is the highest among these E&Ps. To continue reading, click here.