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There are mixed opinions on where oil prices could go as we venture further into 2023. Some analysts believe oil and energy conglomerates such as Exxon Mobil (XOM - Free Report) could have a down year after largely outperforming the broader stock market and economy over the last few years, while others think there is far more upside left.
Here are five oil and energy stocks that investors may want to consider buying in 2023 because they appear poised to grow even if Exxon and others fade.
Energy Transfer (ET - Free Report) : Kicking off the list, Energy Transfers stock might stick out to some investors for its affordable price tag of around $12 a share. After a stellar year, earnings are now expected to dip -25% for fiscal 2022 at $1.41 per share compared to $1.89 per share in 2021.
However, earnings estimate revisions are still higher for FY22 and FY23 with the stock sporting a Zacks Rank #1 (Strong Buy). Even better, as shown in the nearby chart, the Zacks Expected Surprise Prediction (ESP) indicates ET stock could crush its fourth-quarter earnings on February 15 by 18.5% with the Most Accurate Estimate at $0.40 per share and the Zacks Consensus Estimate at $0.34 a share.
Plus, Energy Transfer offers shareholders a very generous dividend with a current yield of 8.47%, which tops the industry average of 7.38% and is well above the S&P 500’s 1.59%.
Image Source: Zacks Investment Research
Helmerich & Payne (HP - Free Report) : Oil and gas driller Helmerich & Payne stands out at the moment with its Oil and Gas Drilling industry in the top 4% of over 250 Zacks industries.
Helmerich & Payne supplies drilling rigs, equipment, personnel, and camps on a contractual basis to explore and develop oil and gas from onshore areas and fixed platforms, tension-leg platforms, and spars in offshore areas.
What sticks out most about Helmerich & Payne stock is the favorable earnings estimate revisions landing the stock a Zacks Rank #1 (Strong Buy). Fiscal year 2023 earnings estimates have gone up 20% over the last 90 days at $4.48. Even better, FY24 EPS estimates have risen 22% at $5.91 per share compared to estimates of $4.84 a share last quarter.
Image Source: Zacks Investment Research
Magellan Midstream Partners : Master limited partnership Magellan Midstream Partners is worthy of investors’ consideration for its diversified portfolio of energy infrastructure assets.
Trading at just 10.5X forward earnings, rising earnings estimate revisions make MMP stock attractive. Magellan’s stock lands a Zacks Rank #2 (Buy) with earnings estimates going up for its current fiscal year 2022 and FY23. Plus, Magellan has beaten bottom-line expectations for nine consecutive quarters.
Magellan’s stellar dividend is also attractive with an 8.01% yield to top its industry average of 7.38% and the benchmark’s 1.59%. Even better, MMP‘s dividend has increased 11 times in the past five years.
Image Source: Zacks Investment Research
Murphy USA (MUSA - Free Report) : As a leading independent retailer of motor fuel and convenience merchandise in the United States, Murphy USA’s top and bottom line growth has been monstrous with the stock sporting a Zacks Rank #1 (Strong Buy) at the moment.
Murphy’s earnings are now expected to round out its fiscal 2022 at $26.99 a share and up 80% from 2021. Fiscal 2023 EPS is anticipated to dip -34% to $17.79 a share after an exceptional year. Still, earnings estimate revisions are noticeably up for both FY22 and FY23.
Image Source: Zacks Investment Research
ProPetro Holding (PUMP - Free Report) : Rounding out the list is another stock that stands out from a price perspective with ProPetro Holding trading at $9 a share. ProPetro is an oilfield services provider that primarily operates in the Permian Basin over west Texas and New Mexico.
Trading under $10 a share, PUMP stock is starting to look very attractive sporting a Zacks Rank #1 (Strong Buy) with earnings estimate revisions on the rise.
ProPetro Holding’s earnings are now forecasted to be $0.34 a share for fiscal 2022 compared to -$0.53 a share in FY21 and then leap 546% in FY23 at $2.20 per share which would largely eclipse pre-pandemic levels. PUMP currently has an “A” Style Scores grade for Value and trades at just 4.3X forward earnings compared to its industry average of 13.2X.
Image Source: Zacks Investment Research
Bottom Line
This list of Oil and Energy stocks shows there may still be an abundance of opportunity in the sector. Although oil prices are prone to fluctuate, the rising earnings estimate revisions for these stocks are a great sign with several of these equities offering solid dividends to support patient investors.
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5 Stand Out Oil & Energy Stocks to Buy
There are mixed opinions on where oil prices could go as we venture further into 2023. Some analysts believe oil and energy conglomerates such as Exxon Mobil (XOM - Free Report) could have a down year after largely outperforming the broader stock market and economy over the last few years, while others think there is far more upside left.
Here are five oil and energy stocks that investors may want to consider buying in 2023 because they appear poised to grow even if Exxon and others fade.
Energy Transfer (ET - Free Report) : Kicking off the list, Energy Transfers stock might stick out to some investors for its affordable price tag of around $12 a share. After a stellar year, earnings are now expected to dip -25% for fiscal 2022 at $1.41 per share compared to $1.89 per share in 2021.
However, earnings estimate revisions are still higher for FY22 and FY23 with the stock sporting a Zacks Rank #1 (Strong Buy). Even better, as shown in the nearby chart, the Zacks Expected Surprise Prediction (ESP) indicates ET stock could crush its fourth-quarter earnings on February 15 by 18.5% with the Most Accurate Estimate at $0.40 per share and the Zacks Consensus Estimate at $0.34 a share.
Plus, Energy Transfer offers shareholders a very generous dividend with a current yield of 8.47%, which tops the industry average of 7.38% and is well above the S&P 500’s 1.59%.
Image Source: Zacks Investment Research
Helmerich & Payne (HP - Free Report) : Oil and gas driller Helmerich & Payne stands out at the moment with its Oil and Gas Drilling industry in the top 4% of over 250 Zacks industries.
Helmerich & Payne supplies drilling rigs, equipment, personnel, and camps on a contractual basis to explore and develop oil and gas from onshore areas and fixed platforms, tension-leg platforms, and spars in offshore areas.
What sticks out most about Helmerich & Payne stock is the favorable earnings estimate revisions landing the stock a Zacks Rank #1 (Strong Buy). Fiscal year 2023 earnings estimates have gone up 20% over the last 90 days at $4.48. Even better, FY24 EPS estimates have risen 22% at $5.91 per share compared to estimates of $4.84 a share last quarter.
Image Source: Zacks Investment Research
Magellan Midstream Partners : Master limited partnership Magellan Midstream Partners is worthy of investors’ consideration for its diversified portfolio of energy infrastructure assets.
Trading at just 10.5X forward earnings, rising earnings estimate revisions make MMP stock attractive. Magellan’s stock lands a Zacks Rank #2 (Buy) with earnings estimates going up for its current fiscal year 2022 and FY23. Plus, Magellan has beaten bottom-line expectations for nine consecutive quarters.
Magellan’s stellar dividend is also attractive with an 8.01% yield to top its industry average of 7.38% and the benchmark’s 1.59%. Even better, MMP‘s dividend has increased 11 times in the past five years.
Image Source: Zacks Investment Research
Murphy USA (MUSA - Free Report) : As a leading independent retailer of motor fuel and convenience merchandise in the United States, Murphy USA’s top and bottom line growth has been monstrous with the stock sporting a Zacks Rank #1 (Strong Buy) at the moment.
Murphy’s earnings are now expected to round out its fiscal 2022 at $26.99 a share and up 80% from 2021. Fiscal 2023 EPS is anticipated to dip -34% to $17.79 a share after an exceptional year. Still, earnings estimate revisions are noticeably up for both FY22 and FY23.
Image Source: Zacks Investment Research
ProPetro Holding (PUMP - Free Report) : Rounding out the list is another stock that stands out from a price perspective with ProPetro Holding trading at $9 a share. ProPetro is an oilfield services provider that primarily operates in the Permian Basin over west Texas and New Mexico.
Trading under $10 a share, PUMP stock is starting to look very attractive sporting a Zacks Rank #1 (Strong Buy) with earnings estimate revisions on the rise.
ProPetro Holding’s earnings are now forecasted to be $0.34 a share for fiscal 2022 compared to -$0.53 a share in FY21 and then leap 546% in FY23 at $2.20 per share which would largely eclipse pre-pandemic levels. PUMP currently has an “A” Style Scores grade for Value and trades at just 4.3X forward earnings compared to its industry average of 13.2X.
Image Source: Zacks Investment Research
Bottom Line
This list of Oil and Energy stocks shows there may still be an abundance of opportunity in the sector. Although oil prices are prone to fluctuate, the rising earnings estimate revisions for these stocks are a great sign with several of these equities offering solid dividends to support patient investors.