Equinor ASA (EQNR - Free Report) has witnessed upward estimate revisions for 2020 and 2021 earnings in the past 30 days. Moreover, in the past six months, the stock has surged 58.3%, beating the industry’s 10.2% improvement.
Factors Working in Favor
Providing energy has now become a challenge since the world is gradually moving away from fossil fuel to clean energy. The transition is necessary to strengthen the global response to the threat of climate change. Like other European energy majors, Equinor also has a strong focus on renewable energy. The company foresees production capacity of 4 to 6 gigawatt (GW) from renewable projects by 2026. Moreover, by 2035, the company plans to further boost the capacity of renewable projects to 12 to 16 GW.
Notably, the company, carrying a Zacks Rank #2 (Buy),generates sufficient energy from wind farms located off the coast of Germany and U.K. to power more than one million homes in Europe. Moreover, outside of Europe, Empire Wind is the first wind project of the company. The offshore wind farm in New York is producing up to 2000 megawatts (MW) of electricity.
Markedly, the integrated energy player has stored and captured 23 million tonnes of CO2. Moreover, the company has allocated one-fourth of its R&D budget for low-carbon and energy efficiency measures. Thus, the company is building up a competitive and resilient business model while aligning its goal with the Paris agreement.
Other Stocks to Consider
Other prospective players in the energy space are Pioneer Natural Resources Company (PXD - Free Report) , Concho Resources Inc. (CXO - Free Report) and Murphy Oil Corporation (MUR - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pioneer Natural has seen upward earnings estimate revisions for 2020 in the past 30 days.
Concho is likely to see earnings growth of 21.6% in 2020.
Murphy’s 2020 bottom-line estimates have been revised upward over the past 30 days.
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