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Don't Overlook These Top-Ranked Energy Stocks Going Into Q2
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Oil prices rallied in the first quarter of 2024, with both Brent and West Texas Intermediate (“WTI”) crude futures registering significant increases. Brent oil, the global benchmark, rose nearly 14%, while WTI, which tracks U.S. crude, surged approximately 16%. At the end of March, the global benchmark settled at $87.48 per barrel, while U.S. crude closed at $83.17.
We believe that energy stocks will continue to be a focal point of the impressive overall market growth as the sentiment on oil prices seems to be leaning toward the bullish side, with the OPEC production cut putting a floor under prices.
Sporting a Zacks Rank #1 (Strong Buy), here are four energy companies that have a strengthening outlook as we move into the second quarter of 2024. These stocks may be beneficiaries of what is hopefully a year-long rally.
Sunoco LP (SUN - Free Report) : It participates in the transportation and supply phase of the U.S. petroleum market across a number of states. It also focuses on motor fuel distribution to convenience stores, independent dealers and commercial customers. SUN pays out 84.20 cents quarterly distribution ($3.368 per unit annually), which gives it a 5.5% yield at the current unit price.
Over the past 60 days, the Zacks Consensus Estimate for Sunoco’s 2024 earnings has moved up 29.5%. The 2024 Zacks Consensus Estimate for SUN indicates 35.9% year-over-year earnings per share growth. Valued at around $6.1 billion, this company has gained 34.1% in a year.
Murphy USA (MUSA - Free Report) : It is a leading independent retailer of motor fuel and convenience merchandise in the United States. The proximity of Murphy USA’s fuel stations to Walmart supercenters helps the company leverage the strong and consistent traffic that these stores attract. MUSA’s acquisition of QuickChek Corporation — a family-owned food and beverage chain — is expected to help improve its offerings.
Over the past 60 days, El Dorado, AR-based Murphy USA has seen the Zacks Consensus Estimate for 2024 improve 6.7%. MUSA beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other, the average being 13.6%. Shares of MUSA have gained 64.6% in a year.
Crescent Point Energy (CPG - Free Report) : This Calgary-based upstream company, which is rebranding itself as Veren Inc., has operations primarily concentrated in southwest and southeast Saskatchewan. Crescent Point, which acquired Shell’s Alberta assets for C$900 million in 2022, counts operational excellence and prudent cost management as its strengths. With a low-risk drilling inventory of long-life assets and strong market access, CPG is also making progress on balance sheet strength and shareholder return initiatives.
Over the past 60 days, the Zacks Consensus Estimate for Crescent Point’s 2024 earnings has moved up 14.2%. Notably, the Zacks Consensus Estimate for CPG’s 2024 earnings per share indicates 13.1% year-over-year growth. With a VGM Score of A and a market capitalization of around $5.1 billion, CPG has gained 7.8% in a year.
Marathon Petroleum (MPC - Free Report) : The company is a leading independent refiner, transporter and marketer of petroleum products. MPC’s $23.3 billion acquisition of Andeavor has integrated the premier assets of both companies, bolstering the scale and leadership position of the combined entity in the United States. As it is, Marathon Petroleum's access to a lower cost of crude in the Permian, Bakken and Canada helps it to benefit from the differentials.
Over the past 60 days, the company’s Zacks Consensus Estimate for 2024 has moved up 7.5%. Marathon Petroleum beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24%, on average. MPC shares have risen 50.7% in a year.
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Don't Overlook These Top-Ranked Energy Stocks Going Into Q2
Oil prices rallied in the first quarter of 2024, with both Brent and West Texas Intermediate (“WTI”) crude futures registering significant increases. Brent oil, the global benchmark, rose nearly 14%, while WTI, which tracks U.S. crude, surged approximately 16%. At the end of March, the global benchmark settled at $87.48 per barrel, while U.S. crude closed at $83.17.
We believe that energy stocks will continue to be a focal point of the impressive overall market growth as the sentiment on oil prices seems to be leaning toward the bullish side, with the OPEC production cut putting a floor under prices.
Sporting a Zacks Rank #1 (Strong Buy), here are four energy companies that have a strengthening outlook as we move into the second quarter of 2024. These stocks may be beneficiaries of what is hopefully a year-long rally.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sunoco LP (SUN - Free Report) : It participates in the transportation and supply phase of the U.S. petroleum market across a number of states. It also focuses on motor fuel distribution to convenience stores, independent dealers and commercial customers. SUN pays out 84.20 cents quarterly distribution ($3.368 per unit annually), which gives it a 5.5% yield at the current unit price.
Over the past 60 days, the Zacks Consensus Estimate for Sunoco’s 2024 earnings has moved up 29.5%. The 2024 Zacks Consensus Estimate for SUN indicates 35.9% year-over-year earnings per share growth. Valued at around $6.1 billion, this company has gained 34.1% in a year.
Murphy USA (MUSA - Free Report) : It is a leading independent retailer of motor fuel and convenience merchandise in the United States. The proximity of Murphy USA’s fuel stations to Walmart supercenters helps the company leverage the strong and consistent traffic that these stores attract. MUSA’s acquisition of QuickChek Corporation — a family-owned food and beverage chain — is expected to help improve its offerings.
Over the past 60 days, El Dorado, AR-based Murphy USA has seen the Zacks Consensus Estimate for 2024 improve 6.7%. MUSA beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other, the average being 13.6%. Shares of MUSA have gained 64.6% in a year.
Crescent Point Energy (CPG - Free Report) : This Calgary-based upstream company, which is rebranding itself as Veren Inc., has operations primarily concentrated in southwest and southeast Saskatchewan. Crescent Point, which acquired Shell’s Alberta assets for C$900 million in 2022, counts operational excellence and prudent cost management as its strengths. With a low-risk drilling inventory of long-life assets and strong market access, CPG is also making progress on balance sheet strength and shareholder return initiatives.
Over the past 60 days, the Zacks Consensus Estimate for Crescent Point’s 2024 earnings has moved up 14.2%. Notably, the Zacks Consensus Estimate for CPG’s 2024 earnings per share indicates 13.1% year-over-year growth. With a VGM Score of A and a market capitalization of around $5.1 billion, CPG has gained 7.8% in a year.
Marathon Petroleum (MPC - Free Report) : The company is a leading independent refiner, transporter and marketer of petroleum products. MPC’s $23.3 billion acquisition of Andeavor has integrated the premier assets of both companies, bolstering the scale and leadership position of the combined entity in the United States. As it is, Marathon Petroleum's access to a lower cost of crude in the Permian, Bakken and Canada helps it to benefit from the differentials.
Over the past 60 days, the company’s Zacks Consensus Estimate for 2024 has moved up 7.5%. Marathon Petroleum beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24%, on average. MPC shares have risen 50.7% in a year.