Evaluating Hess: Insights From 7 Financial Analysts

Throughout the last three months, 7 analysts have evaluated Hess HES, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $182.86, a high estimate of $210.00, and a low estimate of $156.00. Observing a 4.58% increase, the current average has risen from the previous average price target of $174.86.

Diving into Analyst Ratings: An In-Depth Exploration

The perception of Hess by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Hess. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Hess compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Hess's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Hess's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Hess analyst ratings.

Delving into Hess's Background

Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.

A Deep Dive into Hess's Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining Hess's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 37.25% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Hess's net margin is impressive, surpassing industry averages. With a net margin of 29.37%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Hess's ROE stands out, surpassing industry averages. With an impressive ROE of 10.31%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Hess's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.99% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Hess's debt-to-equity ratio stands notably higher than the industry average, reaching 0.98. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.