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3 Energy Stocks Up More Than 10% YTD With More Room to Run
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The crude pricing environment has been notably favorable this year, although it falls short of the more robust commodity prices seen last year. The current year's underperformance is attributed to the inflationary business environment and the subsequent Federal Reserve rate hikes, which have had an adverse impact on energy demand. Consequently, the composite stocks within the energy sector have experienced a year-to-date decline of 1.8%.
However, oil price is expected to remain attractive in the upcoming months due to ongoing uncertainties surrounding Middle East tensions and the tight global supply of the commodity, which will support crude prices. In its latest short-term energy outlook, the U.S. Energy Information Administration (“EIA”) predicts the average spot price of WTI crude at $85.93 per barrel in the December quarter, higher than $82.25 in the third quarter. For 2024, EIA projects WTI crude spot average price at $89.24 per barrel, significantly higher than its projection of $79.41 for this year.
With higher prices, production of the commodity will also possibly increase, aiding exploration and production activities. This will also raise demand for transportation and storage assets. Companies having a presence in liquefied natural gas (LNG) space also have room for improvement, as analysts expect U.S. LNG exports to continue increasing next year.
Stocks in the Spotlight
Employing our proprietary Stock Screener, we have zeroed in on three energy stocks – Antero Midstream Corporation (AM - Free Report) , TotalEnergies (TTE - Free Report) and Ecopetrol SA (EC - Free Report) – each exhibiting gains exceeding 10% year to date, surpassing the overall performance of the energy sector. All the companies have also witnessed upward earnings estimate revisions, creating room for further upside. One of the stocks sports a Zacks Rank #1 (Strong Buy), while the other two carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Midstream, engaged in midstream gathering, compression, processing and fractionation assets, is banking on handsome throughput growth. Significantly higher number of wells being serviced by the freshwater delivery system is backing the company’s year-to-date outperformance, with the stock gaining 20.9% over the time frame.
Management is expecting healthier free cash flows next year, coupled with strong debt reduction initiatives. In fact, over the past 30 days, Antero Midstream, carrying a Zacks Rank #2, has witnessed upward earnings estimate revisions for 2023 and 2024.
To fight climate change,TotalEnergies continues to have a strong focus on natural gas. These initiatives have made the company the second-largest global player in the LNG space. The integrated energy major, with a Zacks Rank of 2, also has a strong footprint in renewable energy, ensuring a positive outlook for long-term growth.
Year to date, the stock gained 11.1%, and over the past 60 days, the stock has witnessed upward earnings estimate revisions for 2023 and 2024.
Ecopetrol is a leading integrated energy player in the American continent and the largest in Colombia. More than 60% of hydrocarbon production in Colombia is being contributed by Ecopetrol. Apart from actively participating in energy transition, EC, sporting a Zacks Rank #1, also has a strong footprint in petrochemicals and gas distribution activities.
Year to date, the stock gained 19.2%, and over the past 30 days, the stock has witnessed upward earnings estimate revisions for 2023 and 2024.
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3 Energy Stocks Up More Than 10% YTD With More Room to Run
The crude pricing environment has been notably favorable this year, although it falls short of the more robust commodity prices seen last year. The current year's underperformance is attributed to the inflationary business environment and the subsequent Federal Reserve rate hikes, which have had an adverse impact on energy demand. Consequently, the composite stocks within the energy sector have experienced a year-to-date decline of 1.8%.
However, oil price is expected to remain attractive in the upcoming months due to ongoing uncertainties surrounding Middle East tensions and the tight global supply of the commodity, which will support crude prices. In its latest short-term energy outlook, the U.S. Energy Information Administration (“EIA”) predicts the average spot price of WTI crude at $85.93 per barrel in the December quarter, higher than $82.25 in the third quarter. For 2024, EIA projects WTI crude spot average price at $89.24 per barrel, significantly higher than its projection of $79.41 for this year.
With higher prices, production of the commodity will also possibly increase, aiding exploration and production activities. This will also raise demand for transportation and storage assets. Companies having a presence in liquefied natural gas (LNG) space also have room for improvement, as analysts expect U.S. LNG exports to continue increasing next year.
Stocks in the Spotlight
Employing our proprietary Stock Screener, we have zeroed in on three energy stocks – Antero Midstream Corporation (AM - Free Report) , TotalEnergies (TTE - Free Report) and Ecopetrol SA (EC - Free Report) – each exhibiting gains exceeding 10% year to date, surpassing the overall performance of the energy sector. All the companies have also witnessed upward earnings estimate revisions, creating room for further upside. One of the stocks sports a Zacks Rank #1 (Strong Buy), while the other two carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Midstream, engaged in midstream gathering, compression, processing and fractionation assets, is banking on handsome throughput growth. Significantly higher number of wells being serviced by the freshwater delivery system is backing the company’s year-to-date outperformance, with the stock gaining 20.9% over the time frame.
Management is expecting healthier free cash flows next year, coupled with strong debt reduction initiatives. In fact, over the past 30 days, Antero Midstream, carrying a Zacks Rank #2, has witnessed upward earnings estimate revisions for 2023 and 2024.
To fight climate change,TotalEnergies continues to have a strong focus on natural gas. These initiatives have made the company the second-largest global player in the LNG space. The integrated energy major, with a Zacks Rank of 2, also has a strong footprint in renewable energy, ensuring a positive outlook for long-term growth.
Year to date, the stock gained 11.1%, and over the past 60 days, the stock has witnessed upward earnings estimate revisions for 2023 and 2024.
Ecopetrol is a leading integrated energy player in the American continent and the largest in Colombia. More than 60% of hydrocarbon production in Colombia is being contributed by Ecopetrol. Apart from actively participating in energy transition, EC, sporting a Zacks Rank #1, also has a strong footprint in petrochemicals and gas distribution activities.
Year to date, the stock gained 19.2%, and over the past 30 days, the stock has witnessed upward earnings estimate revisions for 2023 and 2024.