Will CVR Energy Continue Climbing?
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May
23
Jonathan Yates
Will CVR Energy Continue Climbing?
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With Congress moving to force The Obama Administration’s hand on the Keystone Pipeline and allowing for more liquefied natural gas exports, natural gas companies could be looking at even more markets opening up around the world.  Although it has been on a tear, recently, CVR Energy (NYSE: CVI) is well positioned to gain from the new markets.

It has been a strong year for CVR Energy.

Over the last 52 weeks, it is up by more than 130%.  For 2013, it has jumped by 53.80%.  The momentum continues: for the last week, CVR Energy is up by 11%.  The chart below shows how the stock has surged.

The future looks just as promising.

The price-to-sales ratio is just 0.65.  That means that each dollar of sales in priced at a 35% discount in the stock price.  For value investors, that is very alluring.

For those looking for growth, the price-to-earnings ratio is only 10.30.  On a quarterly basis, earnings growth is very strong.  This year, earnings growth is almost 10%.

There is a very attractive income component, too.

While the average dividend yield for a company on the Standard & Poor’s 500 Index is around 2%, it is 4.47% for CVR Energy.  Management is committed to the dividend, too.  A dividend this high also provides a floor for the stock price.

Interestingly enough, despite the strong increase, the short float is low.  While a short float of 5% is considered to be troubling for a company, for CVR Energy the short float is only 1.69%.  By contrast, the short float for ConocoPhillips (NYSE: COP), a major oil company that counts Warren Buffett as a shareholder, the short float is 1.80%.

 



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