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How Jagged Peak Energy Inc. (NYSE:JAG) Could Add Value To Your Portfolio

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Jagged Peak Energy Inc. (NYSE:JAG), it has a a strong track record of performance as well as an optimistic growth outlook going forward. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Jagged Peak Energy here.

Solid track record with reasonable growth potential

JAG is an attractive stock for growth-seeking investors, with an expected earnings growth of 41% in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 61% next year. This indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. Over the past few years, JAG has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did JAG outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 23% earnings growth. This is an optimistic signal for the future.

NYSE:JAG Past and Future Earnings, September 30th 2019
NYSE:JAG Past and Future Earnings, September 30th 2019

Next Steps:

For Jagged Peak Energy, I've put together three relevant aspects you should further examine:

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  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is JAG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JAG is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JAG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.