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The Zacks Analyst Blog Highlights: APA Corp, Devon Energy, Diamondback Energy, Halliburton and Marathon Oil
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For Immediate Release
Chicago, IL – August 25, 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: APA Corporation (APA - Free Report) , Devon Energy Corporation (DVN - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) , Halliburton Company (HAL - Free Report) and Marathon Oil Corporation (MRO - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Oil Recovers from Long Losing Streak, Energy Companies Rally
U.S. oil futures settled Monday with a gain of 5.6% — the biggest daily percentage climb since March — on account of bargain buying. Prices also found support from a weaker dollar, which made the fuel cheaper to the holders of other currencies. That’s on the heels of a seven-day losing streak for WTI crude triggered by investor fears that the spread of the Delta coronavirus variant would significantly hamper oil demand.
On the New York Mercantile Exchange, WTI crude futures climbed $3.50 to settle at $65.64, after tumbling 2.2% on Friday to end at a three-month low of $62.32 a barrel. For the week, the contract fell 8.9%, marking the biggest weekly drop since October.
Fundamental Picture Remains Constructive
Despite some downside risk associated with the Delta variant-induced demand concerns, the energy market is on the mend with a supportive macro backdrop and stronger fundamentals. Widespread COVID-19 vaccine rollouts, the ongoing government stimulus and OPEC+ supply curtailments have contributed to this positive setup.
U.S. commercial stockpiles are down more than 13% since mid-March. Taking Cushing (the key delivery terminal for U.S. crude futures traded on the New York Mercantile Exchange) as an indicator, the oil market has already tightened considerably. Stocks have fallen under 34 million barrels at the key storage hub, the lowest since October 2018. There is also a marked improvement in gasoline demand on the back of rebounding road and airline travel. With all the tailwinds, the U.S. benchmark briefly hit a more than six-year high of $76.98 in July.
Energy Stocks Take Off
Yesterday’s value buying pushed the Energy Select Sector SPDR — an assortment of the largest U.S. energy companies — up 3.75% to be at the top of the S&P sector standings. Consequently, some of the biggest winners of the S&P 500 on Monday included energy-related names like APA Corp, Devon Energy, Diamondback Energy, Halliburton and Marathon Oil.
APA, carrying a Zacks Rank of #1 (Strong Buy), topped the S&P 500 list with a gain of 7.59%. Other notable energy movers include Devon Energy (6.07%), Diamondback Energy (5.90%), Halliburton (5.49%) and Marathon Oil (5.41%).
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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The Zacks Analyst Blog Highlights: APA Corp, Devon Energy, Diamondback Energy, Halliburton and Marathon Oil
For Immediate Release
Chicago, IL – August 25, 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: APA Corporation (APA - Free Report) , Devon Energy Corporation (DVN - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) , Halliburton Company (HAL - Free Report) and Marathon Oil Corporation (MRO - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Oil Recovers from Long Losing Streak, Energy Companies Rally
U.S. oil futures settled Monday with a gain of 5.6% — the biggest daily percentage climb since March — on account of bargain buying. Prices also found support from a weaker dollar, which made the fuel cheaper to the holders of other currencies. That’s on the heels of a seven-day losing streak for WTI crude triggered by investor fears that the spread of the Delta coronavirus variant would significantly hamper oil demand.
On the New York Mercantile Exchange, WTI crude futures climbed $3.50 to settle at $65.64, after tumbling 2.2% on Friday to end at a three-month low of $62.32 a barrel. For the week, the contract fell 8.9%, marking the biggest weekly drop since October.
Fundamental Picture Remains Constructive
Despite some downside risk associated with the Delta variant-induced demand concerns, the energy market is on the mend with a supportive macro backdrop and stronger fundamentals. Widespread COVID-19 vaccine rollouts, the ongoing government stimulus and OPEC+ supply curtailments have contributed to this positive setup.
U.S. commercial stockpiles are down more than 13% since mid-March. Taking Cushing (the key delivery terminal for U.S. crude futures traded on the New York Mercantile Exchange) as an indicator, the oil market has already tightened considerably. Stocks have fallen under 34 million barrels at the key storage hub, the lowest since October 2018. There is also a marked improvement in gasoline demand on the back of rebounding road and airline travel. With all the tailwinds, the U.S. benchmark briefly hit a more than six-year high of $76.98 in July.
Energy Stocks Take Off
Yesterday’s value buying pushed the Energy Select Sector SPDR — an assortment of the largest U.S. energy companies — up 3.75% to be at the top of the S&P sector standings. Consequently, some of the biggest winners of the S&P 500 on Monday included energy-related names like APA Corp, Devon Energy, Diamondback Energy, Halliburton and Marathon Oil.
APA, carrying a Zacks Rank of #1 (Strong Buy), topped the S&P 500 list with a gain of 7.59%. Other notable energy movers include Devon Energy (6.07%), Diamondback Energy (5.90%), Halliburton (5.49%) and Marathon Oil (5.41%).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.