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And the energy company focused on emissions reduction could soar even higher due to the possible extension of carbon capture tax credits. But another likely reason is Big Money lifting the stock.
California Resources Corporation Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And California Resources Corporation has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CRC has made the last year. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted 10 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
1-month outperformance vs. Energy Select Sector SPDR ETF (+7.6% vs. XLE)
Outperformance is important for leading stocks.
California Resources Corporation Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, California Resources Corporation has been growing sales at double-digit rates and is quite profitable. Take a look:
1-year sales growth rate (+59.4%)
Profit margin (+23.9%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, CRC has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
CRC has a lot of qualities that are attracting Big Money. It made the Top 20 report for the first time this year, with its initial appearance on 03/29/2022, though dipping 18.6% since. Still, given Big Money’s long-term track record, CRC may well prove to be a gem over time. The blue bars below show when California Resources Corporation was a top pick:
It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CRC makes additional appearances in the years to come. Let’s tie this all together.
California Resources Corporation Price Prediction
The California Resources Corporation rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a more than 1.7% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in CRC at the time of publication.
Learn more about the MAPsignals process here.
This article was originally posted on FX Empire