Stock of the Day

April 20, 2021

ENI (E)

$54.79
+$1.98 (+3.7%)
Market Cap: $89.14B

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. recently reported earnings per share (EPS) of $1.76, exceeding expectations, which indicates strong financial performance and potential for future growth.
  • The company has a consensus rating of "Moderate Buy" from analysts, suggesting positive sentiment and confidence in its stock performance.
  • Eni S.p.A. has a diverse portfolio that includes upstream exploration and production, midstream operations, and downstream refining, which can help mitigate risks associated with market fluctuations.
  • Recent upgrades from analysts, including a target price increase to $64.30, reflect optimism about the company's future prospects and potential for stock appreciation.
  • The current stock price is around $42.30, which may present a buying opportunity for investors looking to enter at a favorable valuation.

ENI Bear Case

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

  • Despite beating EPS estimates, Eni S.p.A. reported revenue of $25.87 billion, which fell short of the consensus estimate, indicating potential challenges in revenue generation.
  • The company has a net margin of 6.51%, which may be considered low compared to industry standards, suggesting less profitability relative to its peers.
  • Recent downgrades from some analysts, including a "strong sell" rating, highlight concerns about the company's future performance and market position.
  • Market volatility and fluctuations in oil and gas prices can significantly impact Eni S.p.A.'s financial results, posing risks for investors.
  • With a return on equity of 11.48%, there may be concerns about the efficiency of the company in generating profits from shareholders' equity compared to other investment opportunities.

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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