Oil stock Pioneer Natural Resources is marching toward the buy point of a cup base. The IBD 50 stock has climbed 13% in the past seven sessions.
The Irving, Texas-based oil explorer and producer is active in the Permian Basin in West Texas, the world's second-largest oil field.
High Ratings For Oil Stock
Pioneer Natural Resources, like many other oil stocks lately, bristles with high ratings. It features perfect 99s for Composite Rating and Earnings Per Share Rating, according to Stock Checkup. The oil stock's Relative Strength Rating is also strong at 93.
Pioneer's earnings have exploded an average 310.8% the past three quarters. Analysts expect profit growth to remain strong in the current quarter with a 102% increase. For the full year, Wall Street sees 152% EPS growth.
Sales, which doubled in the latest quarter, have risen an average 28% the past three years.
Pioneer ranks No. 4 in its U.S. oil and gas exploration and production group based on EPS Rating. The group itself ranks No. 39 out of IBD's 197 industry groups. Groups ranked 40 or higher tend to have stocks sought by deep pocketed institutional investors like mutual funds. The group was ranked 49 three weeks ago and 25 six weeks ago.
Right Side Of Cup Base
PXD stock is forming the right side of a cup base, according to MarketSmith pattern recognition. The chart formation started on May 31 when the stock peaked at 288.46. From there, the oil stock fell 31% to as low as 200.09 on July 14, when it began to rebound. In the process it's climbed back above lines of resistance at both its 50-moving average and 200-day moving average. It's now 10% below a buy point of 288.56.
Pioneer's relative strength line appears to be on the upswing again, but it would be more constructive if the line were to move into or near new high ground as the oil stock approaches or tops the buy point.
Pioneer's Accumulation/Distribution Rating is D+. Normally, you want to see an Acc/Dis Rating of at least C. But Stock Checkup gives this oil stock's Acc/Dis Rating a bullish green dot, meaning it gets a passing grade, anyway.
The price of West Texas crude oil front-month contracts traded on the Nymex has eased since popping up to $95.61 on Aug. 25, according to WSJ Markets. The price has been trending lower since touching $122.11 on June 8.
