Can 154% Growth And 3.6% Dividend Pump Up This Energy Stock? – Investor's Business Daily

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XAutoplay: On | OffEven before Wednesday’s market sell-off over worries about Donald Trump’s presidency, Big Oil and gas stocks like Exxon Mobil (XOM), Schlumberger (SLB), Chevron (CVX) and Halliburton (HAL) were struggling.

Fellow energy play Antero Midstream Partners (AM) was showing stronger technical action, but it also sprung a leak as the Dow Jones industrial average and the S&P 500 crashed below their 50-day moving averages.

While the indexes are showing signs of resilience and a possible rebound, it’s not yet clear if Exxon, Halliburton and other oil giants will climb higher — or if Antero Midstream can finish the base it’s forming and pump out a new breakout.

154% Earnings Growth

Based in Denver, Antero owns and operates shale energy assets in West Virginia and Ohio.

It’s been a profitable venture for the 2014 IPO, which has generated a three-year annual EPS growth rate of 154% and average annual revenue gains of 89% during the same period. Antero pays a dividend currently yielding 3.6%, and sports a 43% pretax profit margin and 22% return on equity.

While the stock’s Accumulation-Distribution Rating slipped to a C in recent days, Antero’s strong fundamentals have attracted institutional demand, helping drive three straight quarters of rising fund ownership.

Is A Breakout In The Pipeline?

Antero is working on a flat base as part of a base-on-base pattern. The buy point is 35.84.

Although the stock was down nearly 2% Thursday, it did manage to find support at its 50-day line and was edging higher on Friday.

Be sure to keep a close eye on current market trends, and see if the indexes and leading stocks can regain their footing and bounce back from Wednesday’s sell-off.

While it’s difficult for any one stock to buck the overall market trend, Antero’s proven track record of profitability may pump up its stock to new heights when a more favorable stock environment returns.

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