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The Zacks Analyst Blog Highlights: Diamondback Energy, Matador Resources Co and EOG Resources

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For Immediate Release

Chicago, IL – April 16, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Diamondback Energy, Inc. (FANG - Free Report) , Matador Resources Company (MTDR - Free Report) and EOG Resources, Inc. (EOG - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

3 Oil Stocks to Add to Your Portfolio Right Away

A strong buzz of optimism prevails to cheer investors that oil demand will skyrocket in 2021 after plummeting last year. The shocking demand depreciation last year due to coronavirus woes had induced surplus inventories of crude oil across the world. This is being worked off currently since fuel demand is improving and with the pace of vaccine rollouts gathering steam, economies across the globe will possibly be on a better footing.  

Oil Price at Pre-Pandemic Mark

The price of West Texas Intermediate (WTI) crude is now trading at more than $62 per barrel, signifying the pre-pandemic level. This reflects a turnaround from last April when the commodity was trading in a negative territory. In fact, since Apr 12, 2021, the price of the commodity has jumped close to 7%.

The spike in oil price found support recently after the International Energy Agency (IEA) revised its forecast for 2021 oil demand higher. In its latest monthly report, the Paris-based organization predicted that global crude demand for 2021 will increase 5.7 million barrel per day (mb/d) to 96.7 mb/d. This mirrored an improvement from the prior monthly report when IEA had projected global oil demand to rise 5.5 mb/d in 2021.

Per the U.S. Energy Information Administration (EIA) report, which suggested that commercial crude oil inventories in the United States fell 5.9 million barrels last week, also backed this recent crude price upsurge. 

Boon for Crude Explorers

This significant rise in oil price is definitely a blessing for explorers and producers. With coronavirus vaccines gradually hitting the markets worldwide, there is a bullish sentiment that oil price will continue to remain healthy since fuel demand will ramp up further by the second half of this year.

Oil explorers and producers have already started returning to prolific shale plays and will probably continue to add crude drilling rigs since expanding production volumes became beneficial nowadays.

Stocks in the Spotlight

Given the brightening crude pricing environment and the drillers resuming activities at oil patches, it will be ideal for investors to consider oil explorers and producers.

Hence, we employed our proprietary stock screener to zero in on three oil stocks that have presence in the prolific shale plays of the United States and are therefore well poised to capitalize on from the upbeat scenario. All stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Headquartered in Midland, TX, Diamondback Energy is a pure-play Permian player with presence across more than 347,000 net acres in the Permian. The company has more than 12,300 gross horizontal locations, which enhance its production outlook. Notably, the stock is likely to see earnings growth of 144.7% in 2021.

Domiciled in Dallas, TX, Matador Resources Co. has a strong footprint in liquid-rich Delaware Basin's Wolfcamp and Bone Spring plays. This stock is likely to see an earnings growth rate of 310.7% in 2021.

EOG Resources, based in Houston, TX, has premium drilling locations in all the prolific shale plays in the United States that include Delaware Basin, a sub-basin of the broader Permian. The company is likely to see earnings growth of 272.6% for the ongoing year.

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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.


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EOG Resources, Inc. (EOG) - free report >>

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Matador Resources Company (MTDR) - free report >>