What's Driving Gulfport Energy Corp's Surprising 22% Stock Rally?

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Gulfport Energy Corp (GPOR, Financial), a prominent player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. The company's stock price has increased by 22.27%, despite a minor setback of a 2.06% decrease over the past week. The stock's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently significantly undervalued at $45,418.14, compared to its past GF Value of $37,569. This indicates a potential opportunity for investors, as the stock was previously considered a possible value trap. 1701616383617400832.png

Company Overview: Gulfport Energy Corp

Gulfport Energy Corp is an independent exploration and development company operating in the Oil & Gas industry. The company's operations are primarily focused on the Utica Shale and Scoop properties. The Utica Shale is located in the Appalachian Basin of the United States and Canada, while the Scoop (South Central Oklahoma Oil Province) play of Oklahoma is situated in the southeast portion of the prolific Anadarko Basin.

Profitability Analysis

Gulfport Energy Corp's Profitability Rank stands at 5/10, indicating moderate profitability. The company's Operating Margin of 53.82% is better than 92.37% of 970 companies in the same industry. This is a testament to the company's efficient operations and cost management. Furthermore, the company's ROE, ROA, and ROIC, which are all significantly higher than the industry average, reflect the company's ability to generate profits from its equity, assets, and invested capital. Over the past 10 years, the company's profitability has been better than 51.42% of 949 companies, demonstrating its consistent performance. 1701616404744110080.png

Growth Prospects

The company's 3-Year Revenue Growth Rate per Share stands at 19.70%, which is better than 69.99% of 853 companies in the same industry. This indicates that the company has been successful in increasing its revenue per share over the past three years, which is a positive sign for potential investors. 1701616421244502016.png

Major Stock Holders

The top three holders of Gulfport Energy Corp's stock are First Pacific Advisors (Trades, Portfolio), Steven Romick (Trades, Portfolio), and David Einhorn (Trades, Portfolio). First Pacific Advisors (Trades, Portfolio) holds the largest number of shares, with 602,180 shares, accounting for 3.22% of the total shares. Steven Romick (Trades, Portfolio) holds 526,060 shares, representing 2.88% of the total shares, while David Einhorn (Trades, Portfolio) holds 215,190 shares, accounting for 1.15% of the total shares.

Competitive Landscape

Gulfport Energy Corp faces stiff competition from other companies in the Oil & Gas industry. Its main competitors include Talos Energy Inc (TALO, Financial) with a market cap of $2.1 billion, Earthstone Energy Inc (ESTE, Financial) with a market cap of $2.18 billion, and Sitio Royalties Corp (STR, Financial) with a market cap of $2.16 billion. Despite the competition, Gulfport Energy Corp's market cap of $2.26 billion indicates its strong position in the industry.

Conclusion

In conclusion, Gulfport Energy Corp's stock performance, profitability, growth, and competitive position make it a compelling option for investors. The company's significantly undervalued GF Value, strong profitability, and impressive growth rate per share indicate its potential for future success. However, investors should also consider the company's competitive landscape and the holdings of major stockholders when making investment decisions.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.