Is There Upside In Cimarex Energy Stock?

SectorOil & Gas
CountryMiddle east

BRAZIL - 2020/07/13: In this photo illustration the Cimarex Energy logo seen displayed on a ... [+] smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images We believe that there is a sizable upside in Cimarex Energy stock (NYSE: XEC) at the current price of $26 as it is down by 50% since the beginning of this year. It traded at a pre-Covid high of $40 in February before dropping to the lows of $13 in March.

Supported by the recovery in benchmark oil prices, the third quarter revenues declined by just 31% (y-o-y) as compared to a staggering 54% decline in the second quarter. In view of rising production volumes and declining commercial crude oil inventories, we more...