Prairie Operating Co (PROP) and Kolibri Global Energy (KGEI) Are Aggressive Growth Stocks

As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan usually looks for stocks that have a strong Zacks Style Score for Growth and a weak Zacks Style Score for Value. This week he is looking at two oil play stocks.

Prairie Operating Co PROP is a Zacks Rank #1 (Strong Buy) and has a D Growth and a C for Value in the Zacks Style Scores. The $150B market cap company just completed an acquisition of Bayswater which will increase daily production by more than 25K barrels per day. The company was going to fund the deal with a $200M offering, but that was downsized to roughly $40M which means the expected dilution is going to be much smaller.

The company is also likely to get a lot of research coverage as a result of the deal. Citi, Truist and KeyBanc among others should have new recommendations out in the coming days and weeks ahead.

Kolibri Global Energy KGEI is a Zacks Rank #2 (Buy) and it has an C for Growth and an A for Value. This is another energy play and it was selected not because of the growth that investors are expecting. This stock trades at a much higher multiple and has a much smaller revenue growth number in absolute terms. It is always a good idea to look at a few stocks in any given sector when trying to figure out what a good multiple should be.

Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.

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This article originally published on Zacks Investment Research (zacks.com).

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