StockStory Favors Occidental and Permian Resources Over Kosmos

StockStory named Occidental Petroleum and Permian Resources its favored energy stocks, while saying Kosmos Energy fell short. The publisher also noted that the energy industry had shed 3.5% over six months, compared with a 16.3% gain for the S&P 500.

For Occidental, StockStory cited annual revenue growth of 8.4% over the past decade and revenue of $24.47 billion. It also pointed to the company’s free cash flow, which it said could fund investments, buybacks or dividends.

StockStory highlighted Permian Resources’ 47.2% annual revenue growth over the past decade. It also cited a 76.1% gross margin and a 29.7% free cash flow margin. The company controls roughly 450,000 net acres in West Texas and New Mexico, according to the article.

The publisher was less positive on Kosmos Energy. It said the company’s annual sales growth averaged 8.4% over the past five years, while its EBITDA margin fell by 10.5 percentage points. StockStory also raised concerns about negative free cash flow and the timeline for returns on investments.

The article gave forward price-to-earnings ratios of 11.1 for Occidental, 9.3 for Permian Resources and 5.3 for Kosmos. These figures and assessments reflect StockStory’s analysis.