With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at InterOil
Forecasts on InterOil
|Median Target Stock Price||$77|
|Fiscal 2011 EPS Estimate||$0.25|
|Fiscal 2012 EPS Estimate||$0.29|
|Expected Annual Earnings Growth, Next 5 Years||101%|
|CAPS Rating (out of 5)||*|
Sources: Yahoo! Finance, Motley Fool CAPS.
How will 2012 go for InterOil?
Analysts and investors alike have high hopes for InterOil in 2012. The target price for the stock represents about a 50% gain from current levels, and even though 2012 earnings likely won't rise significantly from last year's levels, the long-term prospects for the company are truly staggering.
The big prospect for InterOil is its liquefied natural gas project in Papua New Guinea. Although the company went through some troubles with the nation's government, the project now looks to be on track. With several companies signing contracts for InterOil to provide LNG, it now appears that the $6 billion project may have enough interest to go forward.
The South Pacific region has attracted plenty of interest from bigger energy companies, though. ExxonMobil
Nevertheless, increased LNG movement looks to be a huge opportunity in the years to come. Cheniere Energy
InterOil is speculative at this point, but it's made a lot of progress recently. 2012 won't get the company across the finish line, but the next 12 months should tell us a lot about InterOil's longer-term future.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.