Noble Energy (NBL - Get Report) is one of Cramer's favorites because of the company's incredible holdings in Colorado, specifically the Niobrara, which he calls the least talked about major shale play.
Cramer also suggests keeping an eye on the drillers, and he focuses on National Oilwell Varco (NOV - Get Report) because companies need new equipment to drill and National Oilwell Varco make parts for domestic drilling. This stock has come down because of idle offshore rigs, but Cramer believes this issue will right itself once Brazil and Mexico come into effect.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 21.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.04, which illustrates the ability to avoid short-term cash problems.
- Powered by its strong earnings growth of 212.76% and other important driving factors, this stock has surged by 50.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- EOG RESOURCES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EOG RESOURCES INC increased its bottom line by earning $8.05 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($9.79 versus $8.05).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 214.9% when compared to the same quarter one year prior, rising from -$505.00 million to $580.19 million.
- You can view the full analysis from the report here: EOG Ratings Report