Extraction Oil & Gas, Inc. (XOG): A Good Value At Its Current Share Price

The median price target for Extraction Oil & Gas, Inc., (XOG) over the next 12 months is $4, which means that it could rise by 72.41% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $2 for the stock which means it could rise by -13.79%. Most analysts believe that the company’s stock has the potential to rise by 244.83% or more. For Extraction Oil & Gas, Inc. to record further gainanalysts believe that the company has to hit $8 price target. The high price target for XOG for next 12 months currently stands at $8. This means that the highest 12 months price target is 244.83% above its last closing price. For most investors, the -7.57% change in the share price could have prompted them tosell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed October 17, 2019 trading at $2.32 which saw uptrend of -45.92% since the beginning of 2019. The price of the stock has risen by 107.33% from average 12-month price target of $4.81 expected by the analysts.

A look at the XOG stock today shows that it has lost -78.91% of its value over the past one year, which has led to some investors becoming concerned about the short-term performance of Extraction Oil & Gas, Inc. (NASDAQ:XOG). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Extraction Oil & Gas, Inc. (XOG) is 2.5 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 3 times while it has been rated as a Hold 7 times. The 52-week high price for XOG is $11.09 which is attained on October 18 while its 52-week low currently stands at $2.46 and was reached on October 17. At the moment, the stock is trading $-1.67 below its YTD moving average set at $3.99.

Moving on, Extraction Oil & Gas, Inc. (XOG) last released its earnings for the June 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -380% year-over-year at $-0.14. The company brought a surprise of 75 as analysts were predicting $-0.08 per share. The revenue generated by Extraction Oil & Gas, Inc. in the June 2019 quarter declined by -15% to reach $222.06 million. This is lowcompared to the $260.2 million it recorded in the same quarter last year. To see what traders should watch in its September 2019 financial results, analysts have consensus earnings per share of $-0.14 which is lowerthan the $0.03 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 102.6%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 30 % could be achieved. The company has also recorded a revenue of $1.01 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Extraction Oil & Gas, Inc. (NASDAQ:XOG) is now trading at 4.86X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 14.44X while the industry average stands at 11.34X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Extraction Oil & Gas, Inc. was able to achieve an EPS of $0.48 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Thursday, October 17 of 2019, the 14-day Absolute ATR (Average True Range) for XOG moved by $0.25. Over the past seven days, the stock’s average daily volatility stood at 7.7%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Extraction Oil & Gas, Inc.’s trading volume has recently moved to 4.13 million, which is compared with the average daily volume of 3.23 million shares.

The daily chart for XOG, points out that the company has recorded -54.15% losses over the past six months. However, it is still -5.69% lower than its most recent low trading price. The performance of the stock over the past five days shows that it is down -15.64% though it is -18.57% below its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has dropped by -33.14% while it is down -41.98% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of XOG reveals that it has lost some grounds as it ended Thursday with a -29.27% fall over the past 30 days.