VIPER ENERGY INC (NASDAQ:VNOM) – A Strong Growth Stock with Technical Breakout Potential

VIPER ENERGY INC (NASDAQ:VNOM) was identified by our screener as a strong growth stock with a favorable technical setup. The company operates in the oil and gas royalty sector, focusing on the Permian Basin, and shows promising growth metrics alongside a consolidating price pattern that could signal a breakout opportunity.

Fundamental Strengths

• Growth Potential: VNOM has demonstrated strong revenue growth, averaging 23.6% annually over recent years. Future revenue is expected to grow at 24.3% per year, indicating sustained expansion.
• Profitability: The company scores an 8/10 in profitability, with high margins—65.8% operating margin and 41.7% profit margin—outperforming most peers in the Oil, Gas & Consumable Fuels industry.
• Financial Health: While the financial health rating is moderate (5/10), liquidity remains strong with a current ratio of 4.89, well above industry standards.

Technical Setup

• Consolidation Phase: VNOM has been trading in a range between $38.88 and $43.71 recently, showing reduced volatility. This could indicate a potential breakout if momentum shifts upward.
• Support Levels: Key support is found near $38.22 (weekly trendline) and $37.57 (horizontal support), providing downside protection.
• Resistance Zones: A breakout above $41.61-$43.19 could signal further upside, with next resistance near $44.27.

While the long-term trend remains negative, the stock’s recent consolidation and strong fundamentals suggest a possible reversal if market conditions improve.

For a deeper analysis, review the full fundamental report and technical report.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.