Hess Corp., the New York-based energy company, trades 10 percent below its decade-average multiple of 13. Hess will jump 18 percent to $80.21 in the next 12 months, up from an earlier forecast for $65.86, according to data compiled by Bloomberg. With second-quarter earnings estimates down 13 percent from six months ago, the price multiple would expand to 12.8, almost to the historic average.
“We are still going higher,” Phil Orlando, the New York- based chief equity strategist at Federated Investors, which has about $380 billion in assets under management, said by telephone on July 2. “We’re only halfway through the multiple expansion I would expect.”