Saturday, 10 June 2023

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David Einhorn Doubles-Down on These 2 Under-the-Radar Energy Stocks — Here’s Why They May Be Worth Buying – TipRanks Financial Blog

Billionaire David Einhorn warns interest rates will peak at higher level than expected; Here are 2 stocks he’s using to fight the Fed

David Einhorn’s hedge fund, Greenlight Capital, enjoyed some big gains in 2022, being one of the few to benefit from last year’s bear market. The conditions suited the value investor’s style, and the fund had its best year in a decade. However, it has been a different story so far this year, as Greenlight has been underperforming the broad markets.

Einhorn, however, is not about to bang his head against the wall and try to fit a square into a circle. In a recent letter to shareholders, he stated, “Many have commented that what worked in 2022 didn’t work in the beginning of 2023, and vice versa. That seems about right to us.”

While the economy is flashing conflicting signals – employment, wages, and household balance sheets look “quite strong” against concerns that tightening lending standards will “constrain the economy and create a substantial slowdown” – Einhorn remains receptive to whichever way the wind blows. “Our net long exposure is now back in line with its long-term average,” he stated. “We are equally open-minded to becoming even more net long or pivoting back to bearish as economic events unfold.”

In the meantime, Einhorn has been doubling down on the equities he believes will do well whatever the economic backdrop and among those are a pair of under-the-radar energy stocks. We ran these tickers through the TipRanks database to find out Wall Street’s stock experts’ view of them. Let’s check the results.

Gulfport Energy Corporation (GPOR)

The Energy sector was one of the few segments to shine in 2022, and while Einhorn is open to new ideas, it appears that he is still backing its chances. He has been loading up on shares of Gulfport Energy Corporation, an independent oil and natural gas exploration and production (E&P) firm based in Oklahoma City.

With operations primarily focused on the Appalachia and Anadarko basins, the company engages in the acquisition, development, and production of oil and gas reserves. Gulfport boasts a portfolio that includes both conventional and unconventional assets, with a particular emphasis on shale formations such as the Utica Shale in Ohio and the SCOOP play in Oklahoma.

The company adheres to a disciplined approach to capital allocation, prioritizing high-quality assets with favorable risk-reward profiles. It’s a strategy that helped Gulfport deliver a solid set of results in the most recently reported quarter – for 1Q23.

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