[10/20] Kosmos Energy (KOS) Set To Rise Up Based On Profits ๐Ÿš€๐Ÿ™

daz888888888
2023-10-20

$Kosmos(KOS)$ 

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

In contrast to all that, many investors prefer to focus on companies like Kosmos Energy (NYSE:KOS), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Kosmos Energy with the means to add long-term value to shareholders.

View our latest analysis for Kosmos Energy

How Fast Is Kosmos Energy Growing Its Earnings Per Share?

Over the last three years, Kosmos Energy has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. In previous twelve months, Kosmos Energy's EPS has risen from US$0.43 to US$0.47. That's a fair increase of 8.6%.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Kosmos Energy's EBIT margins are flat but, worryingly, its revenue is actually down. While this may raise concerns, investors should investigate the reasoning behind this.

This repost above ๐Ÿ‘† is meant for double scrutiny as the market can be volatile; The lowest for KOS was $5.28 during May 2023. Should we still buy at around $7 or is it overpriced already? @BenjiFuji @babydc care to do technical analysis and comment;

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Comments

  • daz888888888
    2023-10-20
    daz888888888
    Thanks @BenjiFuji will wait and most likely only buy at the higher $5 values
  • BenjiFuji
    2023-10-20
    BenjiFuji
    Tough one for techical analysisโ€ฆ seems like uptrend but not overbought yet.
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