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This is a big week for earnings with over 800 companies expected to report, including many of the FANGMAN stocks and other popular growth stocks.
But included on the list are a bunch of energy stocks, all with Zacks Ranks of #1 (Strong Buy) and #2 (Buy) as earnings estimates are being raised into the second quarter earnings results this week.
And they have good earnings surprise track records as well, with two companies sporting a perfect 5-year earnings surprise record. That’s impressive given the rocky road during the pandemic over the last 2 years.
Energy stocks have sold off the last 6 weeks, as well, making for an unusual combination of rising Zacks Ranks and cheap valuation, with forward P/Es under 10.
Matador Resources has a perfect 5-year earnings surprise record. That’s impressive given that crude went negative in 2020 when the coronavirus pandemic hit.
Matador Resources is the first of the energy producers to report earnings so it will be one to watch. Shares are up 29% year-to-date, but have fallen 8.7% in the last 3 months.
Matador Resources is dirt cheap, with a forward P/E of just 4.3.
Is this summer sell-off in the shares a buying opportunity in Matador?
ExxonMobil is a big oil company which has its hands in all aspects of the energy industry, including refining and service stations.
ExxonMobil actually missed last quarter after beating the 6 quarters prior.
Shares have soared 42% year-to-date, but ExxonMobil is still cheap with a forward P/E of just 7.6 as earnings estimates are on the rise. It’s a Zacks Rank #2 (Buy).
Investors also get the dividend, currently yielding 4%.
ExxonMobil shares have pulled back off recent highs. Is this a buying opportunity?
Chevron is also a big oil company with both upstream and downstream business segments.
Chevron has missed 2 quarters in a row, which is surprising given how bullish the energy complex has been in 2022. Yet Chevron is still a Zacks Rank #2 (Buy) as earnings estimates are on the rise.
Shares are up 23% year-to-date but are down 10% in the last 3 months.
It’s also cheap, with a forward P/E of just 8. Chevron also pays an attractive dividend, yielding 3.9%.
Phillips 66 is a refiner that is a Zacks Rank #1 (Strong Buy). It has only missed 1 time in the last 5 years and that was in 2021. Phillips 66 has beat 5 quarters in a row.
Shares are up 17% year-to-date but Phillips 66 remains dirt cheap with a forward P/E of just 5.8.
Phillips 66 also pays the highest regular dividend of these 5 companies, with a yield of 4.6%.
Should income investors be considering Phillips 66?
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5 Hot Energy Earnings Charts
This is a big week for earnings with over 800 companies expected to report, including many of the FANGMAN stocks and other popular growth stocks.
But included on the list are a bunch of energy stocks, all with Zacks Ranks of #1 (Strong Buy) and #2 (Buy) as earnings estimates are being raised into the second quarter earnings results this week.
And they have good earnings surprise track records as well, with two companies sporting a perfect 5-year earnings surprise record. That’s impressive given the rocky road during the pandemic over the last 2 years.
Energy stocks have sold off the last 6 weeks, as well, making for an unusual combination of rising Zacks Ranks and cheap valuation, with forward P/Es under 10.
Many are also paying juicy dividends over 4%.
Should energy stocks be on your wish list?
5 Hot Energy Earnings Charts
1. Matador Resources (MTDR - Free Report)
Matador Resources has a perfect 5-year earnings surprise record. That’s impressive given that crude went negative in 2020 when the coronavirus pandemic hit.
Matador Resources is the first of the energy producers to report earnings so it will be one to watch. Shares are up 29% year-to-date, but have fallen 8.7% in the last 3 months.
Matador Resources is dirt cheap, with a forward P/E of just 4.3.
Is this summer sell-off in the shares a buying opportunity in Matador?
2. Valero Energy (VLO - Free Report)
Valero Energy operates in refining, not oil production. It, too, has a perfect 5-year earnings surprise track record which is also impressive.
Valero Energy is a Zacks #1 (Strong Buy) with shares up 38.5% year-to-date. However, it has weakened over the last 2 months.
Shares trade at just 5x forward earnings. Valero also pays a dividend, currently yielding 3.8%.
Should investors be buying the refiners?
3. ExxonMobil (XOM - Free Report)
ExxonMobil is a big oil company which has its hands in all aspects of the energy industry, including refining and service stations.
ExxonMobil actually missed last quarter after beating the 6 quarters prior.
Shares have soared 42% year-to-date, but ExxonMobil is still cheap with a forward P/E of just 7.6 as earnings estimates are on the rise. It’s a Zacks Rank #2 (Buy).
Investors also get the dividend, currently yielding 4%.
ExxonMobil shares have pulled back off recent highs. Is this a buying opportunity?
4. Chevron (CVX - Free Report)
Chevron is also a big oil company with both upstream and downstream business segments.
Chevron has missed 2 quarters in a row, which is surprising given how bullish the energy complex has been in 2022. Yet Chevron is still a Zacks Rank #2 (Buy) as earnings estimates are on the rise.
Shares are up 23% year-to-date but are down 10% in the last 3 months.
It’s also cheap, with a forward P/E of just 8. Chevron also pays an attractive dividend, yielding 3.9%.
Is Chevron a hidden gem?
5. Phillips 66 (PSX - Free Report)
Phillips 66 is a refiner that is a Zacks Rank #1 (Strong Buy). It has only missed 1 time in the last 5 years and that was in 2021. Phillips 66 has beat 5 quarters in a row.
Shares are up 17% year-to-date but Phillips 66 remains dirt cheap with a forward P/E of just 5.8.
Phillips 66 also pays the highest regular dividend of these 5 companies, with a yield of 4.6%.
Should income investors be considering Phillips 66?