A Noble Pursuit
Noble Energy (NBL) will report earnings on Thursday before the market opens. I'm picking up some calls going into earnings, because this company has a variety of positives lining up in its favor. Specifically, the company features an inexpensive valuation, and it is on the verge of breaking out of a bullish technical formation.
Value investors love stocks that trade at a discount to their growth rate, and Noble fits that description. The stock is trading at about 12x next year's earnings, but it is expected to grow at about 20% annually over the next three years. This gives the stock a forward price/earnings-to-growth ratio (PEG ratio) of about 0.6 for next year. Stocks that trade with a PEG ratio below 1 are considered inexpensive. Competitors Apache (APA) and Anadarko Petroleum (APC) also trade at a discount to their growth rates....289 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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