uploads/2016/05/DMA2.png

A Look at Concho Resources’ Year-over-Year Stock Performance

By

Updated

CXO’s moving averages

Concho Resources’ (CXO) stock was very volatile in 2015. However, due to the recent rally in crude oil prices (USO), Concho’s stock has been on an uptrend in 2016.

On February 26, 2016, Concho Resources crossed its 50-day moving average for the first time in 2016. It continues to trade above its 50-day moving average. On May 23, 2016, CXO stock was trading ~7.3% above its 50-day moving average.

CXO also broke above its 200-day moving average in mid-March 2016, and it continues to move higher. The fact that the company’s 50-day moving average crossed above its 200-day moving average was a bullish sign.

Article continues below advertisement

A quick earnings review and peer comparison

Concho Resources reported its 1Q16 earnings results on May 4, 2016. The company announced adjusted revenue of ~$541.5 million. Wall Street analysts’ consensus estimate for the company’s revenue was ~$544 million.

CXO’s 1Q16 revenue was ~6.7% lower than its 1Q15 revenue of ~$580.7 million. Its 1Q16 adjusted earnings per share (or EPS) were -$0.05, lower than analysts’ consensus estimate of $0.10.

In comparison, CXO’s upstream peers EP Energy (EPE), Newfield Exploration (NFX), and Cimarex Energy (XEC) reported 1Q16 adjusted EPS of $0.19, $0.09, and -$0.40, respectively. Together, NFX, CXO, and XEC make up 7.7% of the Guggenheim S&P 500 Equal Weight Energy ETF (RYE).

Advertisement

More From Market Realist