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Marathon and Occidental Lead Big Day for Energy Stocks
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Oil futures rose sharply on Monday, lifting U.S. prices to their highest in nearly two weeks, on the back of the Russia-Ukraine crisis and tensions in the Middle East. On the New York Mercantile Exchange, WTI crude futures climbed $7.42 (or 7.1%) to settle at $112.12. That was the highest front-month contract finish since Mar 8.
Commodity Landscape Looks Constructive
The Oil/Energy market continues to enjoy support from geopolitical uncertainty amid Russia’s military operations in Ukraine. Earlier this month, crude prices surged to multi-year highs of $130 on concerns about supplies from Russia, which is one of the world's largest producers of the commodity. The Biden administration’s ban on the import of Russian crude and energy products contributed to oil’s rapid price increase.
Agreed, crude has pulled back from those lofty levels but with the conflict showing no signs of quick resolution and speculation that the European Union could follow the United States in blocking imports of Russian energy — even at the detriment of their economies — is giving fresh impetus to oil bulls.
Crude futures also got a boost from rising friction between the Iran-backed Houthis rebels and Saudi Arabia. Yemen's Houthi forces fired drones and missiles at the heart of the Saudi oil industry during the weekend, including certain Saudi Aramco facilities vital to petroleum exports.
Even the fundamentals point to a tightening of the market. Per the latest government report, U.S. commercial stockpiles have been down more than 17% in a year, prompted by the demand spike owing to the reopening of economies and a rebound in activity.
Energy Stocks Take Off
Yesterday’s move for prices pushed the Energy Select Sector SPDR — an assortment of the largest U.S. energy companies — up 4% to be at the top of the S&P sector standings. Consequently, four of the five biggest winners of the S&P 500 on Monday were energy-related names like Marathon Oil (MRO - Free Report) , Occidental Petroleum (OXY - Free Report) , Hess Corporation (HES) and Diamondback Energy (FANG - Free Report) .
Marathon Oil: Marathon Oil topped the S&P 500 list with a gain of 8.5%. The company has a projected earnings growth rate of 95.5% for this year. The Zacks Consensus Estimate for MRO’s 2022 earnings has been revised 40.2% upward over the past 60 days.
Marathon Oil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 37.4%. MRO carries a Zacks Rank #1 (Strong Buy).
Occidental Petroleum: This stock jumped 8.4% on Mar 21. Occidental Petroleum’s expected EPS growth rate for three to five years is currently 33.7%, which compares favorably with the industry's growth rate of 22.6%.
OXY has a projected earnings growth rate of 96.5% for this year. The Zacks Consensus Estimate for Occidental Petroleum’s 2022 earnings has been revised 71.6% upward over the past 60 days.
Hess: Hess was the fourth top-performing S&P 500 stock yesterday with a gain of 6.6%. The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 30.3%.
Hess is valued at around $30.2 billion. The Zacks Consensus Estimate for Hess’ 2022 earnings has been revised 9% upward over the past 60 days.
Diamondback Energy: Diamondback Energy, with a gain of 6.4%, rounds out the top five daily performers. FANG is valued at some $23.3 billion. The Zacks Consensus Estimate for FANG’s 2022 earnings has been revised 12.3% upward over the past 60 days.
Diamondback Energy, headquartered in Midland, TX, delivered a 7.4% beat in Q4. In fact, FANG went passed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.9%.
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Marathon and Occidental Lead Big Day for Energy Stocks
Oil futures rose sharply on Monday, lifting U.S. prices to their highest in nearly two weeks, on the back of the Russia-Ukraine crisis and tensions in the Middle East. On the New York Mercantile Exchange, WTI crude futures climbed $7.42 (or 7.1%) to settle at $112.12. That was the highest front-month contract finish since Mar 8.
Commodity Landscape Looks Constructive
The Oil/Energy market continues to enjoy support from geopolitical uncertainty amid Russia’s military operations in Ukraine. Earlier this month, crude prices surged to multi-year highs of $130 on concerns about supplies from Russia, which is one of the world's largest producers of the commodity. The Biden administration’s ban on the import of Russian crude and energy products contributed to oil’s rapid price increase.
Agreed, crude has pulled back from those lofty levels but with the conflict showing no signs of quick resolution and speculation that the European Union could follow the United States in blocking imports of Russian energy — even at the detriment of their economies — is giving fresh impetus to oil bulls.
Crude futures also got a boost from rising friction between the Iran-backed Houthis rebels and Saudi Arabia. Yemen's Houthi forces fired drones and missiles at the heart of the Saudi oil industry during the weekend, including certain Saudi Aramco facilities vital to petroleum exports.
Even the fundamentals point to a tightening of the market. Per the latest government report, U.S. commercial stockpiles have been down more than 17% in a year, prompted by the demand spike owing to the reopening of economies and a rebound in activity.
Energy Stocks Take Off
Yesterday’s move for prices pushed the Energy Select Sector SPDR — an assortment of the largest U.S. energy companies — up 4% to be at the top of the S&P sector standings. Consequently, four of the five biggest winners of the S&P 500 on Monday were energy-related names like Marathon Oil (MRO - Free Report) , Occidental Petroleum (OXY - Free Report) , Hess Corporation (HES) and Diamondback Energy (FANG - Free Report) .
Marathon Oil: Marathon Oil topped the S&P 500 list with a gain of 8.5%. The company has a projected earnings growth rate of 95.5% for this year. The Zacks Consensus Estimate for MRO’s 2022 earnings has been revised 40.2% upward over the past 60 days.
Marathon Oil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 37.4%. MRO carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum: This stock jumped 8.4% on Mar 21. Occidental Petroleum’s expected EPS growth rate for three to five years is currently 33.7%, which compares favorably with the industry's growth rate of 22.6%.
OXY has a projected earnings growth rate of 96.5% for this year. The Zacks Consensus Estimate for Occidental Petroleum’s 2022 earnings has been revised 71.6% upward over the past 60 days.
Hess: Hess was the fourth top-performing S&P 500 stock yesterday with a gain of 6.6%. The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 30.3%.
Hess is valued at around $30.2 billion. The Zacks Consensus Estimate for Hess’ 2022 earnings has been revised 9% upward over the past 60 days.
Diamondback Energy: Diamondback Energy, with a gain of 6.4%, rounds out the top five daily performers. FANG is valued at some $23.3 billion. The Zacks Consensus Estimate for FANG’s 2022 earnings has been revised 12.3% upward over the past 60 days.
Diamondback Energy, headquartered in Midland, TX, delivered a 7.4% beat in Q4. In fact, FANG went passed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.9%.