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Zacks Investment Ideas feature highlights: Baker Hughes and Halliburton
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For Immediate Release
Chicago, IL – September 14, 2023 – Today, Zacks Investment Ideas feature highlights Baker Hughes (BKR - Free Report) and Halliburton (HAL - Free Report) .
Top Energy Stocks to Watch as Oil Prices Hit 10-Month Highs
Energy stocks led the way during last year’s bear market, surging in conjunction with Russia’s invasion of Ukraine that upended global energy markets. Many energy companies have since underperformed this year, dragged lower by declining earnings as global markets stabilized. Still, West Texas Intermediate (WTI) crude oil futures are currently testing $90/barrel on a tighter supply outlook. Many analysts expect a move higher in the coming months.
It comes as no surprise then that the energy sector has come back into focus in recent months, earning the top spot as the best performer over the last 1-month and 3-month periods. The Organization of the Petroleum Exporting Countries (OPEC) recently reiterated its forecasts for robust growth in global oil demand this year and next, citing the resilience of energy demand in major economies.
The optimism has sent crude oil prices to a 10-month high, bolstering a host of energy stocks as well. Last week, Saudi Arabia and Russia extended voluntary supply cuts in an effort to keep supplies tight. OPEC, Russia, and allied producers are known as OPEC+.
Energy Industry to Watch
The Zacks Oil and Gas – Field Services industry group has come on strong, advancing nearly 31% over the past 3 months. This industry group is currently ranked in the top 23% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
Quantitative research studies suggest that approximately half of a stock’s future price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
By focusing on top stocks within the best-performing industries, we can dramatically improve our odds of success. Let’s take a deeper dive into two leading stocks within this top industry.
Established Players Hit 52-Week Highs
Oil-related stocks tend to have a high correlation with the price of crude oil. Higher oil prices are good news for oil company margins and profits. As crude prices continue to move higher, the opportunity for investors to profit expands.
Baker Hughes is outperforming the market this year. BKR stock is ranked favorably by our Zacks Style Scores, with top marks in our Growth and Momentum categories. Baker Hughes has surpassed earnings estimates in three of the last of four quarters, with an average earnings beat of 6.56%. BKR shares have risen nearly 50% in the past year and are currently hovering near a 52-week high.
Likewise, Halliburton shares have begun to show signs of life. Halliburton has established a long track record of earnings beats, and boasts a trailing four-quarter average earnings surprise of 6.18%. HAL stock is up more than 42% in the past year and hit a 52-week closing high just yesterday.
Halliburton stock remains relatively undervalued at just a 13.93 forward P/E, and is also ranked favorably by our Zacks Style Scores with a top mark in our Growth category. Both BKR and HAL stocks are part of the leading industry group we explored earlier and are set to build on their recent momentum.
Make sure to keep an eye on these energy companies as oil prices rebound.
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.
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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Zacks Investment Ideas feature highlights: Baker Hughes and Halliburton
For Immediate Release
Chicago, IL – September 14, 2023 – Today, Zacks Investment Ideas feature highlights Baker Hughes (BKR - Free Report) and Halliburton (HAL - Free Report) .
Top Energy Stocks to Watch as Oil Prices Hit 10-Month Highs
Energy stocks led the way during last year’s bear market, surging in conjunction with Russia’s invasion of Ukraine that upended global energy markets. Many energy companies have since underperformed this year, dragged lower by declining earnings as global markets stabilized. Still, West Texas Intermediate (WTI) crude oil futures are currently testing $90/barrel on a tighter supply outlook. Many analysts expect a move higher in the coming months.
It comes as no surprise then that the energy sector has come back into focus in recent months, earning the top spot as the best performer over the last 1-month and 3-month periods. The Organization of the Petroleum Exporting Countries (OPEC) recently reiterated its forecasts for robust growth in global oil demand this year and next, citing the resilience of energy demand in major economies.
The optimism has sent crude oil prices to a 10-month high, bolstering a host of energy stocks as well. Last week, Saudi Arabia and Russia extended voluntary supply cuts in an effort to keep supplies tight. OPEC, Russia, and allied producers are known as OPEC+.
Energy Industry to Watch
The Zacks Oil and Gas – Field Services industry group has come on strong, advancing nearly 31% over the past 3 months. This industry group is currently ranked in the top 23% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
Quantitative research studies suggest that approximately half of a stock’s future price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
By focusing on top stocks within the best-performing industries, we can dramatically improve our odds of success. Let’s take a deeper dive into two leading stocks within this top industry.
Established Players Hit 52-Week Highs
Oil-related stocks tend to have a high correlation with the price of crude oil. Higher oil prices are good news for oil company margins and profits. As crude prices continue to move higher, the opportunity for investors to profit expands.
Baker Hughes is outperforming the market this year. BKR stock is ranked favorably by our Zacks Style Scores, with top marks in our Growth and Momentum categories. Baker Hughes has surpassed earnings estimates in three of the last of four quarters, with an average earnings beat of 6.56%. BKR shares have risen nearly 50% in the past year and are currently hovering near a 52-week high.
Likewise, Halliburton shares have begun to show signs of life. Halliburton has established a long track record of earnings beats, and boasts a trailing four-quarter average earnings surprise of 6.18%. HAL stock is up more than 42% in the past year and hit a 52-week closing high just yesterday.
Halliburton stock remains relatively undervalued at just a 13.93 forward P/E, and is also ranked favorably by our Zacks Style Scores with a top mark in our Growth category. Both BKR and HAL stocks are part of the leading industry group we explored earlier and are set to build on their recent momentum.
Make sure to keep an eye on these energy companies as oil prices rebound.
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 >>
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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.