Magnolia Oil & Gas Sees Big Money

And the oil and natural gas company could increase even more due to strong sales and profits. But another likely reason is Big Money lifting the stock.

Big Money Likes Magnolia Oil & Gas

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 Magnolia Oil & Gas 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 MGY has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 18 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 (+6.7% vs. XLE)

Outperformance is important for leading stocks.

Magnolia Oil & Gas 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, Magnolia Oil & Gas has been growing sales well and is profitable. Take a look:

• 1-year sales growth rate (+99.2%)
• 3-year sales growth rate (+21.6%)
• Profit margin (+38.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, MGY 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.

MGY has a lot of qualities that are attracting Big Money. It’s made the Top 20 report four times since 2017, with its first appearance on 03/08/2022…and gaining 0.8% since. The blue bars below show when Magnolia Oil & Gas was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if MGY makes additional appearances in the years to come. Let’s tie this all together.

Magnolia Oil & Gas Price Prediction

The Magnolia Oil & Gas rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a nearly 1.6% 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 MGY at the time of publication.

Learn more about the MAPsignals process here.

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