Hess Corporation [HES] – The Fundamentals are a good enough reason to be bullish on HES

Hess Corporation [NYSE: HES] shares went higher by 3.93% from its previous closing of 44.28, now trading at the price of $46.02, also adding 1.74 points. Is HES stock a buy or should you stay away?

The stock had a rather active trading session with the latest closing, by far recording 1.28 million contracts. Compared to the average trading volume of HES shares, the company saw a far better performance. Moreover, the stock has a 274.86M float and a 4.29% run over in the last seven days. HES share price has been hovering between 74.11 and 26.06 lately, and is definitely worthy of attention.

Hess Corporation [NYSE:HES]: Analyst Rating and Earnings

Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Hess Corporation [HES], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in 12/30/2019. On average, stock market experts give HES an Overweight rating. The average 12-month price forecast for this stock is $45.91, with the high estimate being $73.00, the low estimate being $35.00 and the median estimate amounting to $46.50. This is compared to its latest closing price of $44.28.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Hess Corporation [HES] is sitting at 4.13. This is compared to 1 month ago, when its average rating was 4.20.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on 05/07/2020.

Fundamental Analysis of Hess Corporation [HES]

Now let’s turn to look at profitability: with a current Operating Margin for Hess Corporation [HES] sitting at 9.00% and its Gross Margin at 70.40%, this company’s Net Margin is now -6.30. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 3.42, and its Return on Invested Capital has reached -2.50. Its Return on Equity is -4.50%, and its Return on Assets is -1.90%. These metrics suggest that this Hess Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Hess Corporation [HES] has generated a Total Debt to Total Equity ratio of 90.84. Similarly, its Total Debt to Total Capital is 47.60, while its Total Debt to Total Assets stands at 36.42. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 88.56, and its Long-Term Debt to Total Capital is 46.41.

What about valuation? This company’s Enterprise Value to EBITDA is 7.01 and its Total Debt to EBITDA Value is 2.67. The Enterprise Value to Sales for this firm is now 2.99, and its Total Debt to Enterprise Value stands at 0.29. Hess Corporation [HES] has a Price to Book Ratio of 2.33, a Price to Cash Flow Ratio of 12.26.

Hess Corporation [HES] has 337.39M shares outstanding, amounting to a total market cap of 14.94B. Its stock price has been found in the range of 26.06 to 74.11. At its current price, it has moved down by -37.90% from its 52-week high, and it has moved up 76.59% from its 52-week low.

This stock’s Beta value is currently 2.29, which indicates that it is 6.82% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.75. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Hess Corporation [HES] a Reliable Buy?

Shares of Hess Corporation [HES], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.

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Author: Kevin Freeman