We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Welcome to Episode #339 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.
With energy stocks rallying again, it’s time to take a look at commodities stocks. Tracey has been reading the book “The Joys of Compounding”, by Gautum Baid. It has a chapter that is very relevant to what is going on in commodities right now. That chapter is called “Investing in Commodity and Cyclical Stocks is all about the Capital Cycle.”
In the chapter, Baid gives tips on how to invest in commodities. Here’s a hint, they aren’t like other stocks. I cover what those tips are in the podcast. Tune in.
Are we in a new secular bull market in energy? If we are, there are going to be investing opportunities. What stocks should you be looking at?
Pioneer Natural Resources is one of the largest exploration and production companies in the Permian Basin. In 2022, when crude prices were above $100, it paid out $6.27 billion to shareholders in dividends and other distributions.
Shares of Pioneer Natural Resources have jumped 14.3% in the last month but is up only 3% year-to-date. It has a debt-to-equity ratio of just 0.23.
Should Pioneer Natural Resources be on your short list?
EOG Resources is a big cap exploration and production company with a market cap of $76.6 billion. It drills in the Permian, Williston, Anadarko, and Powder River basins, among others. In 2022, it paid out $5.1 billion in dividends and other distributions.
Shares of EOG Resources have popped 12.8% in the last month and are now up 1.2% year-to-date. It has a debt-to-equity ratio of 0.14.
Should investors have EOG Resources on their short list?
Hess is a global integrated energy company with exploration and midstream segments. It’s exploring in one of the key emerging oil markets: offshore Guyana. Hess also explores in the Bakken and offshore in the Gulf of Mexico. In 2022, it paid $975 million in dividends and other distributions.
Shares of Hess have rallied 16.5% in the last month and are up 10.4% year-to-date. It has a debt-to-equity ratio of 0.97.
Should investors look outside the United States with a company like Hess?
SLB, formerly known as Schlumberger, is a global technology company focused on the energy industry. It operates in 100 countries. In 2022, SLB paid $848 million in dividends and other distributions.
Shares of SLB are up 10.4% in the last month and 10.2% year-to-date. It has a debt-to-equity ratio of 0.74.
Should a services company like SLB be on your short list?
Baker Hughes is an energy technology company with operations in 120 countries. In 2022, it paid $743 million in dividends and other distributions to shareholders.
Shares of Baker Hughes are up 6.7% in the last month but have been grinding higher all year. They’re up 19.6% year-to-date. Baker Hughes has a debt-to-equity ratio of 0.38.
Is Baker Hughes poised for further upside?
What Else Do You Need to Know About Investing in Commodities?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of PXD in her personal portfolio.]
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
How to Invest in Commodity Stocks
Welcome to Episode #339 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.
With energy stocks rallying again, it’s time to take a look at commodities stocks. Tracey has been reading the book “The Joys of Compounding”, by Gautum Baid. It has a chapter that is very relevant to what is going on in commodities right now. That chapter is called “Investing in Commodity and Cyclical Stocks is all about the Capital Cycle.”
In the chapter, Baid gives tips on how to invest in commodities. Here’s a hint, they aren’t like other stocks. I cover what those tips are in the podcast. Tune in.
Are we in a new secular bull market in energy? If we are, there are going to be investing opportunities. What stocks should you be looking at?
5 Energy Stocks for Your Short List
1. Pioneer Natural Resources (PXD - Free Report)
Pioneer Natural Resources is one of the largest exploration and production companies in the Permian Basin. In 2022, when crude prices were above $100, it paid out $6.27 billion to shareholders in dividends and other distributions.
Shares of Pioneer Natural Resources have jumped 14.3% in the last month but is up only 3% year-to-date. It has a debt-to-equity ratio of just 0.23.
Should Pioneer Natural Resources be on your short list?
2. EOG Resources, Inc. (EOG - Free Report)
EOG Resources is a big cap exploration and production company with a market cap of $76.6 billion. It drills in the Permian, Williston, Anadarko, and Powder River basins, among others. In 2022, it paid out $5.1 billion in dividends and other distributions.
Shares of EOG Resources have popped 12.8% in the last month and are now up 1.2% year-to-date. It has a debt-to-equity ratio of 0.14.
Should investors have EOG Resources on their short list?
3. Hess Corp. (HES - Free Report)
Hess is a global integrated energy company with exploration and midstream segments. It’s exploring in one of the key emerging oil markets: offshore Guyana. Hess also explores in the Bakken and offshore in the Gulf of Mexico. In 2022, it paid $975 million in dividends and other distributions.
Shares of Hess have rallied 16.5% in the last month and are up 10.4% year-to-date. It has a debt-to-equity ratio of 0.97.
Should investors look outside the United States with a company like Hess?
4. SLB (SLB - Free Report)
SLB, formerly known as Schlumberger, is a global technology company focused on the energy industry. It operates in 100 countries. In 2022, SLB paid $848 million in dividends and other distributions.
Shares of SLB are up 10.4% in the last month and 10.2% year-to-date. It has a debt-to-equity ratio of 0.74.
Should a services company like SLB be on your short list?
5. Baker Hughes Co. (BKR - Free Report)
Baker Hughes is an energy technology company with operations in 120 countries. In 2022, it paid $743 million in dividends and other distributions to shareholders.
Shares of Baker Hughes are up 6.7% in the last month but have been grinding higher all year. They’re up 19.6% year-to-date. Baker Hughes has a debt-to-equity ratio of 0.38.
Is Baker Hughes poised for further upside?
What Else Do You Need to Know About Investing in Commodities?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of PXD in her personal portfolio.]