Noble Energy Inc Stock Buy Recommendation Reiterated (NBL)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Noble Energy (NYSE: NBL) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 30.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • NOBLE ENERGY 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, NOBLE ENERGY INC increased its bottom line by earning $5.33 versus $2.19 in the prior year. This year, the market expects an improvement in earnings ($6.73 versus $5.33).
  • 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 184.8% when compared to the same quarter one year prior, rising from -$296.00 million to $251.00 million.
  • The gross profit margin for NOBLE ENERGY INC is currently very high, coming in at 79.70%. It has increased significantly from the same period last year. Along with this, the net profit margin of 22.57% significantly outperformed against the industry average.

Noble Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, production, and marketing of crude oil, natural gas, and natural gas liquids primarily in the United States, West Africa, and Eastern Mediterranean. Noble Energy has a market cap of $19.2 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 20.00, above the S&P 500 P/E ratio of 18.00. Shares are up 5.4% year to date as of the close of trading on Friday.

You can view the full Noble Energy Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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