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Zacks Market Edge Highlights: Anadarko, WildHorse Resource, Lonestar, Pioneer Natural and Chevron

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For Immediate Release

Chicago, IL – May 24, 2018 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/304689/5-top-energy-stocks-to-buy-right-now)

5 Top Energy Stocks to Buy Right Now

Welcome to Episode #131 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Sheraz Mian, Zacks Director of Research, to talk about their favorite topic: the energy sector.

The Hottest Sector of 2018

Investors have been ignoring the energy sector for at least three years. Can you blame them?

The energy stocks plunged to multi-year lows in 2016 and 2017 as crude fell into the $30s. Oil analysts were forecasting even more doom, with some predicting crude would fall under $20 a barrel.

It never did.

The energy stocks have recovered from the sell-off in fits and starts during that time, with at least one false bottom.

But now, in mid-2018, it appears, with crude above $70 a barrel for the first time in 3 ½ years and the stocks on a tear, that the worst is over.

If this is the beginning of the big energy turnaround, where do you want to invest?

Where to Invest? Many Different Energy Choices

1.       Refiners: They have the best record year-to-date. The average return on those stocks is 23.5%.

2.       Explorers & Producers (E&Ps)

3.       Drillers

4.       Services

5.       Integrateds (aka Big Oil)

Where you invest will be determined by your risk tolerance and goals.

But here are 5 stocks that have solid Zacks Ranks and earnings are exploding higher.

Energy Stocks to Buy Now

1.       Anadarko Petroleum is one of the larger E&P companies with a market cap of $37.3 billion. It’s in the midst of a $3 billion share buyback and it hiked its dividend, which currently yields 1.5%. Shares are up 32% year-to-date but earnings are expected to rise 229%. It’s a Zacks Rank #1 (Strong Buy).

2.       WildHorse Resource Development is a mid-cap E&P based in Texas. It drills in the Eagle Ford and Northern Louisiana. Shares are up 45% year-to-date but earnings are expected to jump 290% year-over-year. It’s also a Zacks Rank #1 (Strong Buy).

3.       Lonestar Resources has a market cap of just $175 million. It’s an E&P which drills in the Eagle Ford. The company recently raised its full year production guidance after a strong start to 2018. It sees more active drilling in 2018. The insiders have been buying more shares in April and May 2018.

4.       Pioneer Natural Resources (PXD - Free Report) is another big cap E&P. It specializes in the Permian Basin. Sheraz has recommended it as one of his top energy picks for the last two years. Earnings are expected to jump 212% year-over-year. Shares are up 17% year-to-date.

5.       Chevron (CVX - Free Report) is one of the big integrated oil companies. Shares are up only about 2% year-to-date but are up well off their 2018 lows. Earnings are expected to rise 101% in 2018. Is this a buying opportunity in big oil?

What about the service stocks? In past podcasts, Sheraz has liked that niche. Should you consider some of those for your portfolio in 2018?

Sheraz also has his eye on a refiner. Is it too late to get into those?

Find out which one he likes and what he thinks about the rest of the refiners on this week’s podcast.

[In full disclosure, Tracey owns shares of LONE in her personal portfolio.]

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