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Chicago, IL – December 4, 2020 – 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:
Oil Stocks: Buy for 2021?
Welcome to Episode #250 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.
This week, Tracey is going solo to take a look at the energy stocks, specifically the big integrated oil companies and the large exploration and production companies.
Global Recovery = Higher Oil Demand?
In November, energy stocks had their second great month of 2020, second only to the big April rally off the March coronavirus lows.
WTI crude has retaken $45 on the coronavirus vaccine news and the hope that energy demand will pick up in 2021.
It is looking like brighter days for the industry are coming in the next few years.
But should investors be buying here?
5 Big Energy Companies: Should You Buy for 2021?
1. Chevron (CVX - Free Report) made $6.27 in 2019, is expected to lose $0.03 in 2020, and is expected to bounce back by 2021 with earnings of $2.54. Shares jumped 25% in November but are still down 21% over the last 2 years. It is still paying that big dividend, currently yielding 5.7%. Is it on sale?
2. Exxon (XOM - Free Report) recently announced a cut in its CAPEX and another 15% global layoffs as it frees up cash to pay its dividend which is currently yielding 9.1%. Shares jumped 19% in November but remain down 51% over the last 2 years. A value or a trap?
3. Pioneer Natural Resources (PXD - Free Report) has one of the best balance sheets of the E&Ps. It’s expected to still have positive earnings in 2020 and trades with a forward P/E of 63. With solid cash flows, it is buying Parsley Energy for $4.5 billion. And it’s still paying its dividend.
4. EOG Resources (EOG - Free Report) has been raising its dividend the last several years and it still yields 2.9%, even with the pandemic. Shares were up 37.4% in November but remain down 54% over the last 2 years. Earnings are expected to double in 2021. Is it cheap right now?
5. ConocoPhillips (COP - Free Report) is acquiring Concho Resources which will create an energy company with a $60 billion enterprise value. The deal is expected to close in the first quarter of 2021. Conoco is expected to lose $0.91 this year but earnings will rebound in 2021. The Zacks Consensus is looking for $0.55. It also pays an attractive dividend.
What else do you need to know about the oil stocks?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: Chevron, Exxon, Pioneer Natural Resources, EOG Resources and ConocoPhillips
For Immediate Release
Chicago, IL – December 4, 2020 – 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:
Oil Stocks: Buy for 2021?
Welcome to Episode #250 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.
This week, Tracey is going solo to take a look at the energy stocks, specifically the big integrated oil companies and the large exploration and production companies.
Global Recovery = Higher Oil Demand?
In November, energy stocks had their second great month of 2020, second only to the big April rally off the March coronavirus lows.
WTI crude has retaken $45 on the coronavirus vaccine news and the hope that energy demand will pick up in 2021.
It is looking like brighter days for the industry are coming in the next few years.
But should investors be buying here?
5 Big Energy Companies: Should You Buy for 2021?
1. Chevron (CVX - Free Report) made $6.27 in 2019, is expected to lose $0.03 in 2020, and is expected to bounce back by 2021 with earnings of $2.54. Shares jumped 25% in November but are still down 21% over the last 2 years. It is still paying that big dividend, currently yielding 5.7%. Is it on sale?
2. Exxon (XOM - Free Report) recently announced a cut in its CAPEX and another 15% global layoffs as it frees up cash to pay its dividend which is currently yielding 9.1%. Shares jumped 19% in November but remain down 51% over the last 2 years. A value or a trap?
3. Pioneer Natural Resources (PXD - Free Report) has one of the best balance sheets of the E&Ps. It’s expected to still have positive earnings in 2020 and trades with a forward P/E of 63. With solid cash flows, it is buying Parsley Energy for $4.5 billion. And it’s still paying its dividend.
4. EOG Resources (EOG - Free Report) has been raising its dividend the last several years and it still yields 2.9%, even with the pandemic. Shares were up 37.4% in November but remain down 54% over the last 2 years. Earnings are expected to double in 2021. Is it cheap right now?
5. ConocoPhillips (COP - Free Report) is acquiring Concho Resources which will create an energy company with a $60 billion enterprise value. The deal is expected to close in the first quarter of 2021. Conoco is expected to lose $0.91 this year but earnings will rebound in 2021. The Zacks Consensus is looking for $0.55. It also pays an attractive dividend.
What else do you need to know about the oil stocks?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.