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Zacks Value Trader Highlights: SLB, Halliburton, NexTier Oilfield Solutions, Valero Energy and Marathon Petroleumt
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For Immediate Release
Chicago, IL – March 20, 2023 – Zacks Value Trader 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: https://www.zacks.com/stock/news/2067047/5-cheap-energy-stocks-to-buy-now)
5 Cheap Energy Stocks to Buy Now
Welcome to Episode #321 of the Value Investor Podcast.
(0:40) - Can You Find Strong Value Stocks Within The Energy Sector?
(4:30) - Breaking Down The Energy Field Services: Is This Somewhere You Should Be Investing?
(13:40) - Will The Energy Refining Industry Continue To See Growth?
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The energy stocks have sold off again as WTI oil has fallen below $70 and is now at 17-month lows. With some energy stocks at 52-week lows again, having round tripped since the Ukraine War sent oil prices soaring, could there be a buying opportunity in energy again?
Warren Buffett, and Berkshire Hathaway, has been deploying cash again in March 2023. But Berkshire isn't buying the bank stocks, even though it owns a big position in Bank of America. It's adding again to its big Occidental Petroleum position instead.
What does Buffett know that he's diving in for more shares?
Where to Find Top Energy Stocks
But you don't have to buy an oil producer like Berkshire is to get good quality energy companies. Other areas of energy have top industry ranks and are also cheap.
The Oil & Gas – Field Services industry is ranked 65 out of 249 industries. That puts it in the top 26%.
The Refining industry is ranked 19 out of 249, which puts it in the top 8% of all industries.
SLB is a global technology company that operates in the energy industry. It's in the services industry.
Shares of SLB have fallen 13% year-to-date as crude oil has fallen. But earnings are expected to rise 38.5% in 2023 and another 25.3% in 2024. SLB has gotten cheaper in 2023, and now trades with a PEG of just 0.4.
Halliburton is one of the world's largest providers of products and services to the energy industry.
Shares of Halliburton have fallen 21.2% in 2023. Earnings are expected to jump 43.7% in 2023. As a result, Halliburton has a dirt-cheap PEG ratio of just 0.3. A PEG under 1.0 indicates a company has both value and growth.
Halliburton pays a dividend, currently yielding 1.3%.
Is this a buying opportunity in Halliburton?
3. NexTier Oilfield Solutions
NexTier Oilfield Solutions is a US-land well-completions company. It's a small cap, with a market cap of just $1.8 billion.
Shares of NexTier have fallen 15.8% year-to-date on the latest energy sell-off. However, earnings are expected to rise 63.3% in 2023.
NexTier trades with a forward P/E of just 3. It doesn't pay a dividend.
Should investors be looking at small cap energy, such as NexTier, in 2023?
Marathon Petroleum is a downstream energy operator with refining, pipelines and retail through its branded Marathon service stations. It has a $54 billion market cap.
Shares of Marathon Petroleum are up 7.5% year-to-date but it still remains cheap. It has a PEG ratio of just 0.2.
Marathon Petroleum pays a dividend, currently yielding 2.4%. And as of Jan 31, 2023, it had $7.6 billion remaining on a share repurchase authorization with no expiration date.
Marathon Petroleum is a Zacks Rank #2 (Buy) stock.
Should downstream companies like Marathon Petroleum be on your watch list?
What Else Do You Need to Know About Energy Stocks in 2023?
Listen to this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: SLB, Halliburton, NexTier Oilfield Solutions, Valero Energy and Marathon Petroleumt
For Immediate Release
Chicago, IL – March 20, 2023 – Zacks Value Trader 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: https://www.zacks.com/stock/news/2067047/5-cheap-energy-stocks-to-buy-now)
5 Cheap Energy Stocks to Buy Now
Welcome to Episode #321 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The energy stocks have sold off again as WTI oil has fallen below $70 and is now at 17-month lows. With some energy stocks at 52-week lows again, having round tripped since the Ukraine War sent oil prices soaring, could there be a buying opportunity in energy again?
Warren Buffett, and Berkshire Hathaway, has been deploying cash again in March 2023. But Berkshire isn't buying the bank stocks, even though it owns a big position in Bank of America. It's adding again to its big Occidental Petroleum position instead.
What does Buffett know that he's diving in for more shares?
Where to Find Top Energy Stocks
But you don't have to buy an oil producer like Berkshire is to get good quality energy companies. Other areas of energy have top industry ranks and are also cheap.
The Oil & Gas – Field Services industry is ranked 65 out of 249 industries. That puts it in the top 26%.
The Refining industry is ranked 19 out of 249, which puts it in the top 8% of all industries.
5 Cheap Energy Stocks to Buy Now
1. SLB (SLB - Free Report)
SLB is a global technology company that operates in the energy industry. It's in the services industry.
Shares of SLB have fallen 13% year-to-date as crude oil has fallen. But earnings are expected to rise 38.5% in 2023 and another 25.3% in 2024. SLB has gotten cheaper in 2023, and now trades with a PEG of just 0.4.
SLB pays a dividend, currently yielding 2.2%.
Should SLB be on your short list?
2. Halliburton (HAL - Free Report)
Halliburton is one of the world's largest providers of products and services to the energy industry.
Shares of Halliburton have fallen 21.2% in 2023. Earnings are expected to jump 43.7% in 2023. As a result, Halliburton has a dirt-cheap PEG ratio of just 0.3. A PEG under 1.0 indicates a company has both value and growth.
Halliburton pays a dividend, currently yielding 1.3%.
Is this a buying opportunity in Halliburton?
3. NexTier Oilfield Solutions
NexTier Oilfield Solutions is a US-land well-completions company. It's a small cap, with a market cap of just $1.8 billion.
Shares of NexTier have fallen 15.8% year-to-date on the latest energy sell-off. However, earnings are expected to rise 63.3% in 2023.
NexTier trades with a forward P/E of just 3. It doesn't pay a dividend.
Should investors be looking at small cap energy, such as NexTier, in 2023?
4. Valero Energy (VLO - Free Report)
Valero Energy owns 15 refineries in the United States, Canada and the United Kingdom.
Shares of Valero Energy are up on the year, but just 0.2%. Shares are still dirt-cheap with a forward P/E of 5.1.
In Jan 2023, Valero Energy raised its quarterly dividend to $1.02 from $0.98, for an annualized dividend of $4.08. That's currently yielding 3.3%.
Valero is a Zacks Rank #1 (Strong Buy).
Should a refiner like Valero be on your short list?
5. Marathon Petroleum Corp. (MPC - Free Report)
Marathon Petroleum is a downstream energy operator with refining, pipelines and retail through its branded Marathon service stations. It has a $54 billion market cap.
Shares of Marathon Petroleum are up 7.5% year-to-date but it still remains cheap. It has a PEG ratio of just 0.2.
Marathon Petroleum pays a dividend, currently yielding 2.4%. And as of Jan 31, 2023, it had $7.6 billion remaining on a share repurchase authorization with no expiration date.
Marathon Petroleum is a Zacks Rank #2 (Buy) stock.
Should downstream companies like Marathon Petroleum be on your watch list?
What Else Do You Need to Know About Energy Stocks in 2023?
Listen to this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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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/performancefor information about the performance numbers displayed in this press release.