Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Cabot Oil & Gas
So what: Revenue rose 17% to $262.1 million and adjusted earnings per share rose to $0.34 per share. Earnings were a penny short of estimates, but the market is cheering the company's expected production growth in 2012 of 45% to 55%.
Now what: One analyst from Howard Weil even thinks that growth "looks conservative," so Cabot could have more upside potential. Forward earnings estimates still put Cabot at a 30 times P/E ratio, so the price is still steep. I would like to see more actual results and falling costs, as opposed to rising costs this quarter before jumping on board.
Interested in more info on Cabot Oil & Gas? Add it to your watchlist.