Which Is Better Positioned? Patterson-UTI Energy, Inc. (PTEN) and Hatteras Financial Corp (HTS)
New York, NY – GDP INSIDER – 04/14/2014.
This article discusses two companies: Patterson-UTI Energy, Inc. (NASDAQ:PTEN) and Hatteras Financial Corp (NYSE:HTS)
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) climbed yesterday with the stock gaining 162% or $0.32 to finish the day at a closing price of $20.43 on lower than average trading volume of 4.69 million, compared to its 30 day average trading volume of 5.10 million after analysts at Jefferies Group upgraded their rating on the stock from ‘underperform’ to ‘hold’ and boosted their price target from $12 to $20 per share. The land based drilling rigs operator in the United States has been having a very impressive year so far with the stock vastly outperforming the S&P 500 up 22.65% year to date, compared to the index which has only gained 1.63% over the same period. With quarterly revenue growth of 36.80% year on year in a very competitive market, Patterson-UTI Energy has good long term potential. The main issue at the moment is that it has RSI of 66 which would normally indicate that the stock is on the verge of entering into overbought territory, but is more likely that it will find a new trading range around its current level, making it a hold with a view to buy.
Hatteras Financial Corp (NYSE:HTS) climbed slightly yesterday with the stock gaining 0.38% or $0.07 to close at $18.48 on lower than normal trading of 0.809 million shares, compared to its 30 day average trading volume of 0.818 million. The externally managed mortgage real estate investment trust has been fairly volatile for the last month trading between the range of $17.22 and $18.85. Overall, Hatteras Financial Corp has not been performing well over the past one year, with the stock declining 5.67% compared to the S&P 500 which has gained 14.30% over the same period. With negative quarterly revenue growth of -15.90%, the stock has reason to decline, but it is still managing to maintain a dividend yield of 11% which is keeping investors from selling out. With a one year target estimate of $20.27 and RSI of 65.88, there is still significant potential upside to the stock, making it a hold and if market conditions improve a possible medium term buy.
About Ultimate Stock Alerts
UltimateStockAlerts.com covers NASDAQ and NYSE listed companies that are overlooked by Wall Street. Investors can choose to receive trading strategies via text message (SMS) or email. To receive free text message alerts text the word ULTIMATE to 555888 from your cell phone. For more information visit www.UltimateStockAlerts.com
Disclosure: UltimateStockAlerts.com is not a registered investment adviser and nothing contained in any materials should be construed as a recommendation to buy or sell securities. Investors should always conduct their own due diligence with any potential investment. Please visit www.UltimateStockAlerts.com website, for complete risks and disclosures.