We recently compiled a list of the 10 Best Stocks For Day Trading. In this article, we are going to take a look at where Permian Resources Corporation (NYSE:PR) stands against the other day trading stocks.
At the press conference held on September 18, Federal Reserve Chair Jerome Powell reiterated the central bank’s commitment to its dual mandate of achieving maximum employment and price stability. He noted that the U.S. economy has remained strong, with GDP increasing at a steady rate of 2.2% in the first half of the year, while inflation has significantly moderated.
While the labor market has softened somewhat, it continues to show strength, with the unemployment rate still relatively low at 4.2%. Inflationary pressures have reduced, although inflation remains slightly above the 2% target, as core PCE prices have risen by 2.7% over the past year.
In light of these developments, the Federal Open Market Committee (FOMC) chose to lower its policy interest rate by 50 basis points, a move intended to ease monetary policy. Powell explained that this action reflects growing confidence that labor market strength can be maintained, while inflation continues to decrease toward the Fed’s target. Powell emphasized the Fed’s flexibility in its approach and noted that future rate changes will depend on incoming data and the evolving economic landscape.
When questioned about the likelihood of future rate cuts, Powell said that each decision would be data-driven and made on a meeting-by-meeting basis. The Summary of Economic Projections (SEP) suggests a federal funds rate of 4.4% by the end of the year, with further reductions expected in the years ahead, which points to expectations of lower inflation and slightly higher unemployment.
Expert Opinion on Current Economic Conditions
At a CNBC interview on September 23, Stephanie Link, Chief Investment Strategist and Portfolio Manager at Hightower said that the market’s current state of confidence is driven by the belief that the Fed is successfully managing a soft landing and preparing for a cycle of rate cuts. She expects better-than-expected economic growth and earnings forecasts, despite the ongoing volatility in the market.
Link noted the strong recent data, which include improved retail sales, manufacturing, and housing permits, along with jobless claims at a four-month low. This backdrop supports earnings growth and any market weakness presents a buying opportunity, especially in sectors like technology, financials, and industrials.
When asked about her stock picks, Link highlighted Exxon, as she mentioned its low valuation, attractive forward earnings, and the recent acquisition of Pioneer. She expects this acquisition to drive significant production growth and sees multiple upcoming catalysts, such as an analyst meeting in December and new projects next year.
Although oil prices remain volatile due to geopolitical factors in the Middle East, Link downplayed the concerns about higher prices and said that the oil giant generates substantial profits even at lower oil prices. She said that the sector’s ability to return cash to shareholders through dividends and buybacks sees further upside in energy stocks despite the sector lagging recently.
Our Methodology
For this article, we identified over 35 stocks with a beta of over 2.5. Next, we narrowed the list to 10 stocks with the highest 5-year beta and average trading volume of over 10 million. The 10 best stocks for day trading are listed in ascending order of their beta. We also mentioned the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a wellhead, showing off the company’s production of oil and natural gas.
Permian Resources Corporation (NYSE:PR)
5-year Beta (monthly): 4.34
Average Volume: 11,224,979
Number of Hedge Fund Holders: 51
Permian Resources Corporation (NYSE:PR) is a known name in the oil and natural gas sector, primarily focused on maximizing returns for its stakeholders through careful management and development of valuable assets. It takes its place on our list of the best stocks for day trading.
According to the company, it ranks as the second-largest independent exploration and production entity in the Permian Basin. With over 400,000 net leasehold acres and around 68,000 net royalty acres, it is well-positioned to capitalize on the region’s rich oil and liquids-rich natural gas reserves.
Recently, on September 3, the company announced a significant increase in its quarterly base dividend, raising it from $0.06 to $0.15 per share, which translates to an annual yield of $0.60 per share. The 150% boost is evidence of the company’s commitment to returning value to shareholders, placing it among the top in dividend yields within the U.S. independent exploration and production sector as per the company.
To further improve shareholder value, Permian Resources’ (NYSE:PR) Board of Directors has approved a new share repurchase program amounting to $1 billion and replaced the previous $500 million initiative. The approach to buybacks aligns with the company’s historical practices of opportunistic repurchases, which allow it to adjust to market conditions.
Management’s confidence in the sustainability of the new base dividend is noteworthy, especially considering the company’s resilience during potential downturns. Co-CEO Will Hickey emphasized that the dividend can be comfortably maintained for over two years even if oil prices dip below $50 per barrel. The assurance is supported by the company’s advantageous cost structure in the Delaware Basin, a wealth of low-breakeven drilling locations, and a strong balance sheet.
Additionally, on September 17, Permian Resources (NYSE:PR) announced the successful completion of its acquisition of leasehold and royalty interests, along with significant midstream infrastructure from Occidental Petroleum Corporation.
The acquisition adds approximately 29,500 net acres and 9,900 net royalty acres, primarily situated adjacent to the company’s existing assets in Reeves County, Texas. The expansion not only improves the company’s resource base but also strengthens its operational capabilities in a prime area of the Permian Basin.
In the second quarter, 51 hedge funds had stakes in Permian Resources (NYSE:PR), with total positions worth $1.4 billion.
Overall PR ranks 2nd on our list of the best stocks for day trading. While we acknowledge the potential of PR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
