(SFY) - Independent Oil and Natural Gas Company - When compared to the prior-year period, earnings soared 32.3%

Swift Energy Company (SFY) is a Zacks #1 Rank stock that has met or beat the Street's earnings estimate for 16 consecutive quarters. The company recently reported record profits in the second quarter. Consensus estimates have been on the rise. SFY has a price-to-book ratio of 1.9, compared to 5.2 for the market and its PEG ratio currently stands at 0.98. Full Analysis Swift Energy Company is an independent oil and natural gas company engaged in the development, exploration, acquisition and operation of oil and gas properties primarily in the United States. SFY met or exceeded analysts' earnings expectations for the past 16 quarters. During this time frame, the company topped the Street's estimate on 15 occasions by an average margin of 17.7%. On Aug 3, SFY reported record profits in the second quarter of $38.2 million, or $1.27 per share. When compared to the prior-year period, earnings soared 32.3%. With analysts calling for $1.12 per share, the company surprised to the upside by a solid 13.4%. Revenues ballooned 41.1% to $147.2 million from $104.3 million last year. For the first half of the year, profits and revenues grew 40.9% and 41.7%, respectively, when compared to the first six months of 2005. SFY increased revenues for the past three years, while expanding gross margins and growing profits for the past four. Consensus estimates for this quarter and next jumped 5.1% and 10.2%, respectively, over the past 60 days. Profit forecasts for full years 2006 and 2007 have risen 8.3% and 4.5%, respectively, over the past two months. On Aug 28, SFY announced that it will purchase five onshore Louisiana properties from BP American Production Co. for $175 million. The company estimates that total reserves of the purchased properties are about 58.2 billion cubic feet equivalent of proved reserves and 28.1 billion cubic feet equivalent of probable reserves. The company is currently trading at a valuation of 9.9x trailing 12-month earnings and at 8.8x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. SFY has a price-to-book ratio of 1.9, compared to 5.2 for the market and its PEG ratio currently stands at 0.98. The company's return on equity tops that of the industry average—22% compared to 19%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home