Callon Story

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CPE -- USA Stock  

USD 13.57  1.28  8.62%

In general, we focus on analyzing Callon (NYSE:CPE) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Callon Petroleum daily price indicators and compare them against related drivers. Today we will digest Callon Petroleum. We will look into a few reasons why it is still possible for the company to generate above-average margins and positive cash flow.
Published over a month ago
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Volatility may be your only friend when it comes to investing in Callon Petroleum
Our trade advice tool can cross-verify current analyst consensus on Callon Petroleum and to analyze the company potential to grow in the current economic cycle. The company has Net Profit Margin of (230.11) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 72.46 %, which entails that for every 100 dollars of revenue, it generated 0.72 of operating income.
The successful prediction of Callon Petroleum stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Callon Petroleum, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Callon Petroleum based on Callon Petroleum hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Callon Petroleum's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Callon Petroleum's related companies.

Use Technical Analysis to project Callon expected Price

Callon Petroleum technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Callon Petroleum technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Callon Petroleum trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Callon Petroleum, but it might be worth checking our own buy vs. sell analysis

A Deeper look at Callon

Callon Petroleum reported the last year's revenue of 891.78 M. Reported Net Loss for the year was (2.05 B) with profit before taxes, overhead, and interest of 537.09 M.
 2017 2018 2019 2020 (projected)
Interest Expense2.16 M2.5 M2.91 M2.98 M
Gross Profit294.17 M482.69 M537.09 M579.5 M

Cost of Revenue Breakdown

Callon Petroleum Cost of Revenue is increasing over the years with slightly volatile fluctuation. Ongoing Cost of Revenue is projected to grow to about 145.1 M this year. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Callon Petroleum Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 134.48 Million
201323.91 Million
201431.34 Million
201536.83 Million
201650.22 Million
201772.3 Million
2018104.94 Million
2019134.48 Million
2020145.09 Million

Callon Petroleum implied volatility may change after the surge

Coefficient of variation is down to 702.86. It may indicate a possible volatility dip. Callon Petroleum is displaying above-average volatility over the selected time horizon. Investors should scrutinize Callon Petroleum independently to ensure intended market timing strategies are aligned with expectations about Callon Petroleum volatility.

Our Takeaway on Callon Petroleum Investment

Although some other entities under the oil & gas e&p industry are still a bit expensive, Callon Petroleum may offer a potential longer-term growth to shareholders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your Callon Petroleum holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Callon Petroleum.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Callon Petroleum. Please refer to our Terms of Use for any information regarding our disclosure principles.

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