Wall Street’s analysts make their reputations by the quality of their stock notes, and some of them stand tall above their peers. The best analysts bring a sharp eye to the table, and a combination of solid knowledge and deep experience that lends credence to their stock calls. So, when those top analysts start selecting particular stocks as sound choices for investors, we should all take notice.
And now, the Street’s top analyst, Truist’s Neal Dingmann, has been doing just that. Dingmann holds the #1 rating out of more than 8,500 active stock analysts, a rating based on the 76 percent of his stock calls that were successful in the last 12 months. An investor following Dingmann’s advice over that 12-month period would have realized an impressive 31% return.
Dingmann is an energy stock expert and he has been selecting his picks for the coming months, so let’s take a closer look at some of his sector calls and why you might want to ride his coattails. Further adding to these stocks’ appeal, according to the TipRanks data, all are also rated as Strong Buys by the analyst consensus, with double-digit upside potential. Here are the details, along with Dingmann’s comments.
Kodiak Gas Services, Inc. (KGS)
We’ll start in the natural gas segment, where Kodiak Gas Services is a billion-dollar-plus player in the natural gas industry, offering compression services. This is a vital step in moving gas from the production sites through the pipelines to the refineries and end users. Kodiak is a contract provider of large-scale compression services and infrastructure in the US gas sector, and describes its services as ‘critical to our customers’ ability to reliably produce natural gas.’
The company was founded in 2010, and today holds leading positions in many of the major production basins across the US. The company has particularly extensive activities in the Permian Basin of West Texas. In addition to its direct compression services, Kodiak also designs and builds gas compressor stations; the firm’s revenue-generating fleet of compressor equipment totals over 3 million horsepower.
This past summer, Kodiak entered the realm of publicly traded stocks with an IPO that closed on July 3. The shares debuted at $16 per share, a value seen as low – the company had originally set an initial share price between $19 and $22. The sale totaled 16 million shares and netted the company $231.4 million in cash proceeds.