Stock of the Day

April 20, 2021

ENI (E)

$30.50
+$0.17 (+0.6%)
Market Cap: $51.50B

About ENI

Eni SpA engages in the exploration, production, refining, and sale of oil, gas, electricity, and chemicals. It operates through the following segments: Exploration and Production, Global Gas and LNG Portfolio, Refining & Marketing and Chemicals, Power & Renewables, and Corporate and Other Activities. The Exploration and Production segment engages in research, development and production of oil, condensates and natural gas, forestry conservation (REDD+) and CO2 capture and storage projects. The Global Gas and LNG Portfolio segment refers to the supply and sale of wholesale natural gas by pipeline, international transport and purchase and marketing of LNG, which includes gas trading activities finalized to hedging and stabilizing the trade margins, as well as optimizing the gas asset portfolio. The Refining & Marketing and Chemicals segment engages in supply, processing, distribution, and marketing of fuels and chemicals. The Corporate and Other Activities segment includes the main business support functions in particular holding, central treasury, IT, human resources, real estate services, captive insurance activities, research and development, new technologies, business digitalization, and environmental activities. The company was founded on February 10, 1953 and is headquartered in Rome, Italy.

ENI Bull Case

Here are some ways that investors could benefit from investing in Eni S.p.A.:

  • Eni S.p.A. has recently seen increased institutional investment, with significant stakes raised by firms such as Dimensional Fund Advisors LP and Forum Financial Management LP, indicating strong confidence in the company's future performance.
  • The current stock price is around $29.43, which is near its one-year high of $33.12, suggesting potential for growth as it approaches previous highs.
  • Analysts have a consensus rating of "Hold" for Eni S.p.A., with a price target of $31.60, indicating that while the stock is not currently a buy, it is expected to maintain its value.
  • Eni S.p.A. has a solid financial position, with a debt-to-equity ratio of 0.41, which suggests that the company is not overly reliant on debt to finance its operations, reducing financial risk.
  • Recent increases in share ownership by various institutional investors reflect a positive outlook on the company's performance in the oil and gas sector, which could lead to favorable market conditions.

ENI Bear Case

Investors should be bearish about investing in Eni S.p.A. for these reasons:

  • Several analysts have downgraded their ratings for Eni S.p.A. from "buy" to "hold," which may indicate a lack of confidence in the stock's short-term performance.
  • The stock has experienced fluctuations, with a one-year low of $24.65, suggesting volatility that could pose risks for investors looking for stable returns.
  • Only 1.18% of Eni S.p.A.'s stock is owned by institutional investors and hedge funds, which may indicate a lack of widespread confidence among larger investment entities.
  • Market conditions in the oil and gas sector can be unpredictable, influenced by global economic factors, which could adversely affect Eni S.p.A.'s performance.
  • With a current ratio of 1.27, while still above 1, it indicates that the company has just enough assets to cover its liabilities, which could be a concern for investors looking for stronger liquidity positions.

3 TV And Radio Stocks Broadcast Their Growth

Written By Kate Stalter on 3/24/2021

3 TV And Radio Stocks BroadcastTheir GrowthIn an era of streaming videos and podcasting, who would have expected television- and radio-industry stocks like Gray Television (NYSE: GTN), Townsquare Media (NYSE: TSQ) and Entravision (NYSE: EVC) to show technical strength? The industry, in general, is home to a number of stocks with strong price action lately. 

In some cases, as with Discovery (Nasdaq: DISCA) and AMC Networks (NASDAQ: AMCX), short squeezes drove price increases.

But what’s up with some of these other stocks, particularly the ones where short interest has declined? 

Gray Television: Triple-Digit Earnings Growth

Gray Television is an Atlanta-based small cap with a one-year gain of 101.52%. It pulled back from its March 18 high of $21.22 and is now trading below its 10-day moving average and above its 50-day. 

The company owns and operates TV stations in 94 U.S. markets, and is in the process of closing acquisitions that will bring that total to 102 markets. The company also owns video production units, as well as 

This month, the company said it was leading a group of investors in a $40 million equity investment round for Envy Gaming, an online sports and gaming company. Envy’s stake is $28.5 million. 

Gray also owns video production units, including Raycom Sports, Tupelo Honey, and RTM Studios. 

The company reported triple-digit earnings growth in the past two quarters. Meanwhile, revenue grew at double-digit rates. Both top- and bottom-line results were turnarounds from the quarter ending in June 2020, which saw earnings and revenue declines.

On February 22, the stock cleared a double-bottom pattern with a pivot point of $18.86 in light turnover, but upside trading volume picked up in the following two sessions. The current pullback may offer investors a new opportunity to add shares.

3 TV And Radio Stocks BroadcastTheir Growth Townsquare Media: Shares Up 200%

Townsquare Media, with a market capitalization of just $180.6 million, is considered a microcap. As such, it’s more prone to volatile trade than larger, more liquid securities.  

The company’s media properties include radio stations and local Web sites in smaller U.S. markets. It also owns a streaming radio app, radioPup. 

The company reported fourth-quarter earnings on March 16. Net income was $0.15 per share on revenue of $108.5 million. 

Townsquare shares have risen 202.41% over the past year, and 78.23% year-to-date. 

As a microcap stock, don’t expect to see much institutional ownership. Fifty-six funds owned shares at the end of 2020, down from 61 in the prior quarter. 

Its up/down volume ratio over the past 50 days is 2.0. This ratio is calculated by dividing trading volume on days when the stock closes a session higher by volume on days with a lower close. A ratio above 1.0 may be a signal that further gains are to come, as investors are putting money into the stock, rather than selling. 

On Tuesday, the stock rallied to a session high of $12.52, its best levels in four years. However, it retraced those gains, mirroring the day’s action in the broader markets. Trading became more volatile since the start of this year; that’s often due to short covering, and can be more pronounced in a stock like this with a small market cap.

Investors should use caution with stock this size, even if it shows promise. It’s easy to get shaken out with volatile trade, even if one or two large holders exit or pare their positions. 
3 TV And Radio Stocks BroadcastTheir GrowthEntravision: One Fund Owns 9%

Entravision Communications owns a range of media properties in the U.S., Mexico, Spain and other Spanish-language markets. 

This is another micro-cap stock, with a market cap of $250.4 million. It’s been trading in a sideways formation for the past three weeks. That’s a potentially good sign, as it may indicate large owners are holding shares, rather than selling. That often precedes further gains. 

One fund, the American Century Small Cap Value Fund, owns 9.12% of shares outstanding. That adds risk. If that fund decides to sell even part of its position, it will make a dent in the stock’s price. 

Revenue resumed growth in the most recent quarter, after seven quarters in a row of declines. 

The stock soared 10% after its earnings report on March 11, and is maintaining those gains. 

In addition to being thinly traded, Entravision is a low-priced stock. It’s trading in a range between $4.06 and $4.20, finding solid support above its 10-day moving average. 

In the earnings conference call, CEO Walter Ulloa cited increases in advertising revenue as revenue drivers. 

He noted that national advertising revenue was up 20% driven mainly by the automotive and healthcare sectors, excluding election-season political advertising. He said local ad revenue was up 2%, driven by legal services and healthcare.

3 TV And Radio Stocks BroadcastTheir Growth

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