2 Reasons Why Cabot (COG) Is A Strong Buy Stock Right Now
Zacks Investment Research | Dec 19, 2018 10:01PM ET
We are upbeat about Cabot Oil & Gas Corporation’s (NYSE:COG) prospects and believe it is a promising pick at the moment.
The company currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best opportunities for investors.
Let’s delve deeper to analyze the factors that make this upstream energy player an attractive investment option.
Access to Marcellus’s Core Gas Acres
Cabot Oil & Gas is among the leading explorers and producers of natural gas with exclusive focus on domestic resources. In the United States, the company primarily operates in gas-rich Marcellus Shale, where more than 80% of capital budget has been allocated.
In the Marcellus Shale, the company has roughly 3,000 of undrilled prospective drilling locations, reflecting strong production prospects. In fact, through 2018, the company estimates production growth of 7% to 8%. Through 2019, Cabot expects production growth to be higher at 20-25%.
Well Placed to Capitalize Clean Energy Demand
Since almost all of Cabot’s production comprises natural gas, the company is well placed to capitalize on the growing clean energy demand.
Investors should know that through 2018, natural gas contributed to roughly 32% of the nation’s electricity generation, more than coal, per Original post
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