Dallas, Texas 05/22/2014 (FINANCIALSTRENDS) – SandRidge Energy Inc. (NYSE:SD) was referred as an underappreciated stock, overlooked by investors by the equities research analysts at Zacks. The Zacks’ analysts believed that SandRidge Energy seems to be well positioned for a solid gain as it has witnessed estimates rise over the past couple of weeks for the current fiscal FY14 by more than 110%. However, they noted that the estimate rise have not yet been reflected in this oil and gas exploration and production stock’s price as the stock lost nearly 2% during the same time frame.
Potential for a Big Move:
The analysts explained that a possible way to identify underappreciated stocks is to follow analysts raising earnings estimates which may signal potential upside in the stock price regardless of price momentum remaining muted going forward. The analysts anticipate around 45% earnings growth for SandRidge Energy Inc. (NYSE:SD) in the current fiscal, on a year over year basis which could trigger price appreciation going forward. The analysts at Zacks have assigned a “buy” rating for the stock of SandRidge Energy which carries Zacks Rank #2.
Recently during 1Q14 earnings conference, Chief Executive Officer of SandRidge Energy, James Bennett affirmed that the company is going to focus on the areas of competitive advantages including its set of more than 1,200 horizontal wells which are considered to have the lowest well costs in the basin. Bennett also mentioned that the company is also focusing on the Northern Garfield and has launched a full development effort there following success of its well appraisal program. The addition of this field will add to company’s asset base while increasing its opportunity set through addition of high return oil well.
SandRidge Energy Inc. (NYSE:SD) mainly operates in Exploration and Production segment; Drilling and Oil Field Services segment; and Midstream Services segment. Yesterday, the stock closed at $6.76, gaining 3.21% from its previous close.