With stocks eying bear-market territory, it is important to be even more selective in evaluating positions. While companies with poor financials can shine during bull markets, in times of distress fundamentals are crucial.
In IBD's Screen of the Day, stocks with rising profit estimates for 2022 are highlighted. And here are some of the names to watch.
Colorado-based Civitas Energy will report earnings after the close today. EPS is estimated at $2.07 with sales of $407.6 million. The oil and gas producer has been benefiting from skyrocketing energy costs. Strong sentiment rose further today as oil prices pushed higher and the U.S. and U.K. prepared to ban Russian oil imports.
Civitas Energy is in a strong position to meet this rising demand domestically. It has been busy expanding operations through acquisitions, most recently closing the acquisition of DJ Basin last week.
Civitas Energy is consolidating and forming an undefined pattern with a 59.75 buy point. For environmentally conscious investors, Civitas Energy is a sustainable company, being the first carbon-neutral energy producer in Colorado.
Rising Profit Estimates For Extra Space Storage, Vertex
Extra Space Storage reported strong fourth-quarter results on Feb. 23. Net income of $2 per share was a 68.1% increase on the prior year, while strong demand led to record levels of storage occupancy.
For the quarter, the company reported funds from operations per share of $1.91, also coming above analyst expectations. This was no surprise because it's beaten analyst FFO expectations for 15 straight quarters.
Extra Space Storage is forming a cup base, though it still needs to show further strength because the majority of the base is forming below its 50-day moving average. The buy point is 228.94.
Vertex Pharmaceuticals is seeing support after pulling back to its 10-week moving average. The drugmaker — involved with producing drugs for cystic fibrosis and other rare diseases — has been steadily growing profits.
Three-year EPS and sales growth rates stand at 53% and 38%, respectively. Strong results have led the company to boast an EPS Rating of 98.
Possible updates could come today as Vertex Pharmaceuticals is presenting at Cowen's Annual Health Care Conference.
Vertex Pharmaceuticals is forming a flat base with a 255.03 buy point, according to MarketSmith pattern recognition. The stock is now finding support after pulling back to its 50-day moving average.
