Petro-Canada

Petro-Canada (PCZ), one of Canada’s largest oil and gas companies, reported second quarter earnings on July 24 and easily beat estimates by 24.39% as crude prices soared.

Net earnings surged 81.2% to $1.498 billion, or $3.10 per share, from $845 million, or $1.71 per share in the second quarter of 2007. Total production, however, fell 3% year-over-year to 414 Mboe/d from 425 Mboe/d. Production for the first six months of 2008 was higher than the same period a year ago.

The company said lower volumes reflected decreased North American natural gas and East Coast Canada production, partially offset by increased Oil Sands and international production.

PCZ Raises Dividend 54%

The company is bullish about the full-year 2008. PCZ announced it was raising its dividend by 54%, to 20 cents per share from 13 cents, as cash flows remained stable.

Value Fundamentals Intact

Petro-Canada, a Zacks #1 Rank (Strong Buy), has surprised on estimates 3 out of the last 4 quarters by an average of 3.35%.

PCZ is cheap, with a forward P/E of just 4.79. Its price-to-book is 1.98. The company’s one year return on equity (ROE) is an outstanding 26%. Read the Apr 22 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Schnitzer Steel Industries, Inc. (SCHN) manufactures and exports recycled ferrous metal products. The company is riding the price surge on ferrous metals to record earnings as worldwide demand remains strong. Schnitzer has a forward P/E of only 10.80 even as the stock has soared in 2008. Read the July 22 analysis.

SYNNEX Corporation (SNX) services resellers and original equipment manufacturers (OEMs) around the globe. The company is bullish, guiding revenue and earnings per share higher for the third quarter. The company has surprised on estimates 3 out of the last 4 quarters by 7.55%. Read the July 23 analysis.

Posco (PKX), the fourth-largest steel manufacturer in the world, makes big profits as steel demand remains strong worldwide and prices continue to rise. Second quarter revenues rose 28.3% compared to a year ago. The company has a forward P/E of only 9.06. Read the July 24 analysis.

EnerSys (ENS) manufactures reserve power and motive power batteries, charges, power equipment and battery accessories worldwide. EnerSys raised guidance for the first-quarter 2009 as it sees strong demand for battery products worldwide. The company has surprised on estimates for 4 consecutive quarters by 21.97%. Read the July 25 analysis.

Posted in Categories: Contributor, External Research, Stocks.

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