Jagged Peak Energy Inc. (JAG): Alive and Kicking?

If you can handle volatility, Jagged Peak Energy Inc. (NYSE:JAG) is the stock to watch now. The stock closed higher on 11 February. The shares accumulated 0.04 points or 0.38 percent at $10.57 with a heavy trade volume of 1.788 million shares. After opening the session at $10.45, the shares went as high as $10.68 and as low as $10.45, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.26 billion and now has 213.39 million shares outstanding. Jagged Peak Energy Inc. (JAG) stock has gained 3.12 percent of market value in 21 trading days.

JAG stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.21 a share in the trailing twelve months. The stock’s value has surged 15.9 percent year to date (YTD) against a decline of -7.93 percent in 12 month’s time. The company’s shares still trade -29.44 percent away from its 1-year high of $14.98 and 24.79 percent up from 52-week low of $8.47. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Jagged Peak Energy Inc. (JAG) will probably climb 28.95 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $18 price as 12-month high target. This represents a whopping 70.29 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $13, which represents a return potential of 22.99 percent when compared to the closing price of the stock of $10.57 on Monday, February 11. The lowest price target for the stock is $10 — slightly more than -5.39 percent from JAG’s current share price.

History has shown that shares in Jagged Peak Energy Inc. have gone up on 5 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $10.45. Below this, the next support is placed in the zone of $10.34. Till the time, the JAG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.88 on daily chart, which may remain a cause for concern. If the price breaks below $10.34 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $10.68 mark may result into a pull-back move towards $10.8 level.

Further, it is sporting a 4.12 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.49. 87.2 percent is the gross profit margin for Jagged Peak Energy Inc. and operating margin sits at 26.4 percent. Along with this, the net profit margin is -1.5 percent.