3 Reasons Growth Investors Will Love Cimarex (XEC)

3 Reasons Growth Investors Will Love Cimarex (XEC)

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market’s attention and produce exceptional returns. However, it isn’t easy to find a great growth stock.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company’s growth story is over or nearing its end, betting on it could lead to significant loss.

However, it’s pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company’s real growth prospects.

Cimarex Energy (XEC) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this oil and natural gas company a great growth pick right now.

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Cimarex is 2.6%, investors should actually focus on the projected growth. The company’s EPS is expected to grow 538.5% this year, crushing the industry average, which calls for EPS growth of 224.7%.

Cash Flow Growth

While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That’s because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Cimarex is 16.7%, which is higher than many of its peers. In fact, the rate compares to the industry average of -35%.

While investors should actually consider the current cash flow growth, it’s worth taking a look at the historical rate too for putting the current reading into proper perspective. The company’s annualized cash flow growth rate has been 18.1% over the past 3-5 years versus the industry average of 6.8%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Cimarex have been revising upward. The Zacks Consensus Estimate for the current year has surged 10.5% over the past month.

Bottom Line

Cimarex has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Cimarex well for outperformance, so growth investors may want to bet on it.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bitcoin ABC promotes eCash, proposing to use blockchain tech…

(MENAFN - Zex PR Wire)

On July 1st, 2021, Bitcoin ABC launched the“eCash” initiative, which will alter the digital payment ecosystem in the future.

British Columbia, CANADA, 20 Aug 2021, ZEXPRWIRE , eCash is a cryptocurrency with a clear path to becoming a reliable global currency. It revolves around developing high-quality network features and the compensation of the technical expertise which creates them.

eCash achieves Milton Friedman’s ambition by delivering on major promises like the Avalanche consensus layer and adding innovations never seen before in a Bitcoin project like staking fork-free network updates and subchains.

The roadmap gives a high-level overview of the eCash protocol’s technological direction. Constant incremental enhancements are made to the software. The roadmap’s optimizations and protocol updates allow eCash to expand by orders of magnitude. There are three significant enhancements compared to bitcoin. First and foremost, increasing transaction throughput and, second, improving the user’s payment experience. Finally, to assist tomorrow’s economy, they are expanding the protocol and providing fork-free future updates. Every May 15th and November 15th, the eCash network is upgraded.

Bitcoin ABC launched eCash (XEC) on July 1st, 2021. Bits, i.e., two decimal places, will be the dominant unit, not BCHA (8 decimal places), the standard for Bitcoin and Bitcoin Cash, i.e., 1,000,000 XEC = 1 BCHA. The prefix“bitcoin cash:” will be replaced by“ecash:” in the address format. A new website for users and investors has launched to acquire more knowledge about the intricacies of eCash.

The eCash consensus mechanism is believed to be technically proficient with Avalanche , which uses a decentralized governance architecture. According to Bitcoin ABC principal creator Amaury Séchet , Avalanche is a groundbreaking consensus algorithm that cuts transaction confirmation time to less than 1 second, substantially speeding up to block finality.

eCash has been listed on most major exchanges, including UpBit, Binance, Bibox, Huobi Global, and others. In addition, those interested can hunt for the eCash ticker symbol XEC on exchanges, wallets, or price charts to take the initiative toward genuine financial independence.

The eCash team is continuing to build future technology to create an eCash ecosystem that will benefit investors and their hard-earned money. Investors can visit to learn more and make an informed decision for their crypto investments.

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Weownomy Adopts Bitcoin Cash ABC, Newly Rebranded as eCash Coin

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