Why SM Energy (SM) is a Growth Stock to Watch
Most investors know that growth stocks can be some of the most exciting stocks on the market. The reason is that they tend to catch the attention of other investors and thus produce big gains. Everything that goes up must come down however and, when the growth is over and the downside begins, finding companies that still have strong growth prospects is the most important factor for an investor looking for a good stock that will provide top-notch long-term gains.
SM Energy Company (SM) is one of those companies, and it appears to be very well-positioned for excellent earnings growth in both the near and outlying future. With an EPS growth just shy of 260% last year, this Oil-US Exploration and Production company is looking good for 2014 as well. As a matter of fact, current growth estimates for 2014 are calling for a 55.6% earnings per share growth which is very strong.
At 17.77%, the long-term growth rate that SM Energy Company now has is suggestive of excellent long-haul prospects. Add that to the 1.67% rise in estimates over the past month for the current fiscal year and you have an excellent stock on your hands with a very high potential for outperforming the industry.
If a fast-growing stock with a lot more opportunities in the future is the kind of stock that you are searching for, SM Energy Company should definitely be a stock that you consider purchasing soon. Right now it not only has and earnings growth prospect in the double digits but most analysts predict that it will do quite well in the future.
Keep in mind that while SM Energy is no longer a growth stock, analysts believe that it will do quite well in the long run, making it a stock that should fit well into any investor’s portfolio.
Filed under: Stocks for the Long Run
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