$SWN (Southwestern Energy), as of April 25th, has been one of the S&P's highest performing stocks from a percentage points basis. The Texas-based oil and gas firm has jumped onto the national spotlight in recent weeks as its ticker price has jumped from $8.36 on March 7th (when I was able to buy it) to over $12.50 now.
The reasons for the nearly 50% surge in value are many -- a main one is some oil volatility overseas -- but it remains a stock with some really high potential and room to grow. But, as is true with many independent energy firms, the stock lacks longterm consistency (per Yahoo! Finance, the 52-week range is $5-$29.51).
So, is $SWN is good target buy or is it better to wait on it for a few more weeks and see if the recent surge in pricing is a fluke?
The right answer is that there isn't one. I'm playing a bit of a conservative approach with this one because of how all over the place it has been the last 8 weeks and because of the uncertainty in Russia, which has now decided to price its own oil. Vladimir Putin's intentions are to maximize his country's profits on the much-desired resource, which gave a quick bump to $SWN.
Even market reports about the stock have been varied, as Cowen and Co. recently downgraded $SWN to market perform from outperform while others have upgraded it to buy.
With all of this divisive sentiment around the company, which does have a market cap of over $5 billion and and has seen revenues increase so far in 2016 as compared to 2015. Also, the recent announcement of Catherine Kehr to the board should continue to be a good sign for Southwestern's stability in the months to come.
Overall, I'm holding onto $SWN. It definitely has free-fall potential but there are a lot of reasons to be positive about its future, so I'll still be in for a few more weeks, especially if the peaks continue to be more often than the valleys.
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