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.
3 Energy Stocks With Solid Earnings Estimate Revisions for '24
Read MoreHide Full Article
The West Texas Intermediate (WTI) crude oil price is hovering around the $75 per barrel threshold and is expected to stay robust into the coming year. Specifically, the U.S. Energy Information Administration (“EIA”) anticipates WTI oil price of $78.07 per barrel in 2024, slightly surpassing its projected figure of $77.63 for the current year. Contributing to the strength of commodity prices are additional voluntary production cuts implemented by several OPEC countries.
Although there has been a slowdown in drilling activities, handsome oil prices may provide incentives to explorers and producers to produce more of the commodity. This will increase demand for midstream assets that involve transporting and storing the commodity. Also, rising demand for clean energy will heighten the need for transporting and storing natural gas, which is a cleaner burning fuel than oil.
Despite analysts anticipating a modest decrease in U.S. motor gasoline retail prices in 2024, the demand for gasoline has experienced a significant surge compared to the levels observed during the pandemic era. This upturn can be attributed to the increased travel and the return of individuals to offices.
The Williams Companies is well-poised to capitalize on the mounting demand for clean energy since it engages in transporting, storing, gathering and processing natural gas and natural gas liquids.
With its pipeline networks spread across more than 30,000 miles, The company connects premium basins in the United States to the key market. WMB’s assets can meet 30% of the nation’s consumption of natural gas, which is utilized for heating purposes and clean-energy generation. Thus, the company will be generating stable fee-based revenues and has witnessed upward earnings estimate revisions for 2024 over the past 30 days.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession. Murphy USA also exhibits commendable free cash flow conversions, reflecting its capacity to transform operating profits into free cash flow within a specified timeframe. Notably, over the past 30 days, the stock has witnessed upward earnings estimate revisions for next year.
Western Midstream Partners also has a stable business model, banking on its midstream assets. With new productions coming online and activities in the Delaware Basin intensifying, there is a notable uptick in total throughput for natural gas, crude oil and natural gas liquids. Moreover, the partnership has impressive free cash flow conversions and has witnessed upward earnings estimate revisions for 2024 over the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
3 Energy Stocks With Solid Earnings Estimate Revisions for '24
The West Texas Intermediate (WTI) crude oil price is hovering around the $75 per barrel threshold and is expected to stay robust into the coming year. Specifically, the U.S. Energy Information Administration (“EIA”) anticipates WTI oil price of $78.07 per barrel in 2024, slightly surpassing its projected figure of $77.63 for the current year. Contributing to the strength of commodity prices are additional voluntary production cuts implemented by several OPEC countries.
Although there has been a slowdown in drilling activities, handsome oil prices may provide incentives to explorers and producers to produce more of the commodity. This will increase demand for midstream assets that involve transporting and storing the commodity. Also, rising demand for clean energy will heighten the need for transporting and storing natural gas, which is a cleaner burning fuel than oil.
Despite analysts anticipating a modest decrease in U.S. motor gasoline retail prices in 2024, the demand for gasoline has experienced a significant surge compared to the levels observed during the pandemic era. This upturn can be attributed to the increased travel and the return of individuals to offices.
Considering the backdrop, employing our Stock Screener, we have selected three energy stocks – The Williams Companies, Inc. (WMB - Free Report) , Western Midstream Partners, LP (WES - Free Report) and Murphy USA Inc. (MUSA - Free Report) – each sporting a Zacks Rank #1 (Strong Buy) and has witnessed upward earnings estimate revisions for 2024. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Energy Stocks to Buy
The Williams Companies is well-poised to capitalize on the mounting demand for clean energy since it engages in transporting, storing, gathering and processing natural gas and natural gas liquids.
With its pipeline networks spread across more than 30,000 miles, The company connects premium basins in the United States to the key market. WMB’s assets can meet 30% of the nation’s consumption of natural gas, which is utilized for heating purposes and clean-energy generation. Thus, the company will be generating stable fee-based revenues and has witnessed upward earnings estimate revisions for 2024 over the past 30 days.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession. Murphy USA also exhibits commendable free cash flow conversions, reflecting its capacity to transform operating profits into free cash flow within a specified timeframe. Notably, over the past 30 days, the stock has witnessed upward earnings estimate revisions for next year.
Western Midstream Partners also has a stable business model, banking on its midstream assets. With new productions coming online and activities in the Delaware Basin intensifying, there is a notable uptick in total throughput for natural gas, crude oil and natural gas liquids. Moreover, the partnership has impressive free cash flow conversions and has witnessed upward earnings estimate revisions for 2024 over the past 30 days.