Wall Street’s most bullish Enerplus Corporation (NYSE:ERF) analysts are predicting the share price to blow past $25.5 per share during the next 12 months. The current median share price forecast by them is $20.75, suggesting that the stock could increase 129.79% in that time frame. The average price target of $20.64 calls for a nearly 128.57% increase in the stock price.
Enerplus Corporation (ERF) trading activity significantly improved as the volume at ready counter increased to 2,979,615 shares versus 1,186,565 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 955,693 shares. The share price dropped -6.52% in recent trade and currently has a stock-market value of $2.23B. The shares finished at $9.03, after trading as low as $8.95 earlier in the session. It hit an intraday high Thursday at $9.42. The stock is now 9.45% above against its bear-market low of $8.25 on December 15, 2017. It has retreated -53.6% since it’s 52-week high of $13.87 reached in August. Now the market price is down -2.59% on the year and down -7.76% YTD.
ERF’s 50 day simple moving average (SMA 50) price is $10.41 and its 200-day simple moving average (SMA 200) price is $11.67. The company’s stock currently has a total float of 243.37M shares. Its weekly volatility is hovering around 4.71% and felt 4.78% volatility in price over a month. On the upside, the share price will test short term resistance at around $9.32. On a downside, the stock is likely to find some support, which begins at $8.85. The failure to get near-term support could push it to $8.66.
It had seen a positive analyst call from Raymond James, which upgraded the stock from Outperform to Strong Buy on November 09. Analysts at SunTrust, started covering the stock on June 15 with a Buy rating. Analysts at CIBC, made their first call about the stock on October 18, recommending it is Sector Outperform. CapitalOne, released new analyst coverage on July 11, calling the stock is Overweight.
When looking at valuations, Enerplus Corporation (ERF) has a pricey P/E of 20.81x as compared to industry average of 16.71x. Moreover, it trades for 6.36 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.67x price/book and 2.4x price/sales. Compared to others, Enerplus Corporation is in a different league with regards to profitability, having net margins of 11.7%. To put some perspective around this, the industry’s average net margin is 6.89%. ERF’s ROE is 8.6%, which is also considerably better than the industry’s ROE of 6.89%. It’s also very liquid in the near term, with a current ratio of 1.2. The stock has a debt/capital of 0.38.
Shares of Enerplus Corporation (ERF) have gained 2% since the company’s last earnings report. Over the past 8 fiscal quarters, Enerplus Corporation (NYSE:ERF) has topped consensus earnings estimates in 3 quarters (25%), missed earnings in 5 quarters (41%), whereas at 0 occasion EPS met analyst expectations. ERF last reported earnings on November 09, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.35 per share, -96.45% change on the same period last year. That was worse than consensus for $0.39. Revenue for the recent quarter stood at $319.52 million, up 24% on last year and above the $318.2 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $357.04 million to $357.04 million, which should be compared with $0 generated last year. EPS is seen in a range of $0.41 to $0.41, against the 0 reported a year ago.