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4 Attractive Energy Stocks Trading Near 52-Week Low
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The year has turned out to be challenging as far as oil stock prices are concerned. Commodity price volatility, a weak U.S. dollar, China growth worries, sluggishness in other emerging markets, slumping commodities and geopolitical tensions triggered uncertainty in the domestic stock market.
Oil prices have been hovering around $55 per barrel mark compared with the 2014 levels of around $100 per barrel. The current oil prices have been bolstered by improving fundamentals. Declining inventories and the extension of OPEC-led supply cuts are the two major factors balancing the market and supporting the strong uptrend.
Due to the oil price volatility most energy stock lost much of their market cap. The stocks were pressurized during the ensuing trading sessions. However, many companies still have strong fundamentals and will recover as the oil prices start improving.
Are Oil Stocks Still Worth Betting On?
Investors usually avoid beaten-down stocks to avoid risks. Investors also ignore the fact that the stocks might have lost more value due to temporary company-specific or macroeconomic issues, which might even change in the near future.
Whether a stock is cheap or expensive should be ascertained by the company’s ability to deliver superior performance in the long run. Thus, rather than assessing a stock based on price patterns, one should evaluate the company’s business.
Thus, low valuations do not always mean that the stock has lost all potential. Sometimes, it is an opportunity for investors to make positions in stocks which are trading at a bargain and have immense potential.
4 Favorable Stocks
We hereby zero in on four stocks based on the following credentials: a Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold), current price as a percentage of the 52-week high-low range under 5 (a value of 0 indicates that the stock is trading at its 52-week low) and a Growth Score of A or B on our Zacks Style Score.
Please note that our Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Back-tested results show that stocks with Growth Scores of A or B when combined with a Zacks Rank #1 or 2 or 3 offer the best investment opportunities in the growth investing space. You can see the complete list of today’s Zacks #1 Rank stocks here.
Further, the following picks have been witnessing impressive earnings estimate revision activity, of late, which implies that analysts are increasingly bullish on these stocks.
Headquartered in Denver, Colorado, Bonanza Creek Energy, Inc is an independent oil and natural gas company. It is involved in the exploration, development, and production of onshore oil and related liquids-rich natural gas in the United States and operates mainly the Wattenberg Field and Cotton Valley sands of Southern Arkansas.
Currently, the company is trading a little above its 52-week low of $23.33.
Nevertheless, we are positive on the company as it seeks to maximize corporate returns through improved operating margins and reduced corporate overhead. It also seeks to enhance well performance through improved completions. In order to boost exploration and production economics, the company plans to invest in infrastructure.
Bonanza Creek Energy also holds a favorable Zacks Rank #2 and an equally impressive Growth Score of B. Moreover, the stock has been witnessing positive estimate revisions over the past month as the current-year estimate has increased to 35 cents from 27 cents over the same time frame.
Further, the company’s 2017 EPS is expected to grow a whopping 100.6% year over year.
Chesapeake Energy Corporation (CHK - Free Report) is an independent oil and gas company engaged in the acquisition, development and production of onshore natural gas resources in the United States. The company has witnessed growth and is the second largest natural gas producer in the country. It is also the 13th largest producer of oil and natural gas liquids. Chesapeake is noted for acquisitions.
We arepositive on Chesapeake’s leading position in the top unconventional liquids rich plays, including the Marcellus Shale, which is expected to contribute highly to growth. Recently, Chesapeake brought online the largest Marcellus well in history when it reached a peak rate of 61.8 million cubic feet per day (MMcf/d) after six days of production. The company plans to bring online 40 wells in the Marcellus in the second half of 2017 compared with 11 in the first half of 2017. Haynesville is likely to witness acceleration of activity in the second half of 2017 with plans to bring online 23 wells compared with 17 in the first half of 2017. The rampup of activity in the second half will drive production.
Though the stock is trading just above its 52-week low of $3.41, a Zacks Rank #3 and a firm Growth Score of B lends further optimism.
Adding to the positives, the company has also witnessed positive earnings estimate revisions. Over the past month, current year estimates have increased to 76 cents from 75 cents per share.
Houston, TX-based, Southwestern Energy Company (SWN - Free Report) engages in the exploration, development and production of natural gas and crude oil in the United States.
Southwestern Energy has invested heavily in the development of the fertile Marcellus play, where it held leases for approximately 337,300 net acres. Subsequently, the company increased acreage in the Marcellus Shale in Pennsylvania by acquiring stakes from other stakeholders. The company’s first advantage in the core Fayetteville Shale properties, which still comprises a considerable portion of its production, will support the upside. The economies of scale help the company drive growth rapidly. We believe the successful development of these plays would be a major positive.
Southwestern Energy is trading slightly above the 52 week low level of $4.90. The company also carries a Zacks Rank #3 and Growth Score of B. Moreover, the stock has been witnessing positive estimate revisions over the past one month. The current year consensus estimate of earnings has increased 4.5% over the same time frame.
Petroquest Energy Inc operates mainly as Gulf Coast oil and gas company. The stock is currently hovering around a 52-week low of $1.58.
However, the company has been undertaking several strategic initiatives to address opportunities for growth or improvements in financial and operational efficiency. This should bolster investor sentiments, going forward.
The stock is trading around its 52 week low level of $1.53. It has a Zacks Rank #3 and Growth Score of B. This exploration and production firm has seen positive estimate revisions over the past two months, which has resulted in the narrowing of its 2017 consensus loss estimate by 3.1% over the same time frame.
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Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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4 Attractive Energy Stocks Trading Near 52-Week Low
The year has turned out to be challenging as far as oil stock prices are concerned. Commodity price volatility, a weak U.S. dollar, China growth worries, sluggishness in other emerging markets, slumping commodities and geopolitical tensions triggered uncertainty in the domestic stock market.
Oil prices have been hovering around $55 per barrel mark compared with the 2014 levels of around $100 per barrel. The current oil prices have been bolstered by improving fundamentals. Declining inventories and the extension of OPEC-led supply cuts are the two major factors balancing the market and supporting the strong uptrend.
Due to the oil price volatility most energy stock lost much of their market cap. The stocks were pressurized during the ensuing trading sessions. However, many companies still have strong fundamentals and will recover as the oil prices start improving.
Are Oil Stocks Still Worth Betting On?
Investors usually avoid beaten-down stocks to avoid risks. Investors also ignore the fact that the stocks might have lost more value due to temporary company-specific or macroeconomic issues, which might even change in the near future.
Whether a stock is cheap or expensive should be ascertained by the company’s ability to deliver superior performance in the long run. Thus, rather than assessing a stock based on price patterns, one should evaluate the company’s business.
Thus, low valuations do not always mean that the stock has lost all potential. Sometimes, it is an opportunity for investors to make positions in stocks which are trading at a bargain and have immense potential.
4 Favorable Stocks
We hereby zero in on four stocks based on the following credentials: a Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold), current price as a percentage of the 52-week high-low range under 5 (a value of 0 indicates that the stock is trading at its 52-week low) and a Growth Score of A or B on our Zacks Style Score.
Please note that our Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Back-tested results show that stocks with Growth Scores of A or B when combined with a Zacks Rank #1 or 2 or 3 offer the best investment opportunities in the growth investing space. You can see the complete list of today’s Zacks #1 Rank stocks here.
Further, the following picks have been witnessing impressive earnings estimate revision activity, of late, which implies that analysts are increasingly bullish on these stocks.
Headquartered in Denver, Colorado, Bonanza Creek Energy, Inc is an independent oil and natural gas company. It is involved in the exploration, development, and production of onshore oil and related liquids-rich natural gas in the United States and operates mainly the Wattenberg Field and Cotton Valley sands of Southern Arkansas.
Currently, the company is trading a little above its 52-week low of $23.33.
Nevertheless, we are positive on the company as it seeks to maximize corporate returns through improved operating margins and reduced corporate overhead. It also seeks to enhance well performance through improved completions. In order to boost exploration and production economics, the company plans to invest in infrastructure.
Bonanza Creek Energy also holds a favorable Zacks Rank #2 and an equally impressive Growth Score of B. Moreover, the stock has been witnessing positive estimate revisions over the past month as the current-year estimate has increased to 35 cents from 27 cents over the same time frame.
Further, the company’s 2017 EPS is expected to grow a whopping 100.6% year over year.
Chesapeake Energy Corporation (CHK - Free Report) is an independent oil and gas company engaged in the acquisition, development and production of onshore natural gas resources in the United States. The company has witnessed growth and is the second largest natural gas producer in the country. It is also the 13th largest producer of oil and natural gas liquids. Chesapeake is noted for acquisitions.
We arepositive on Chesapeake’s leading position in the top unconventional liquids rich plays, including the Marcellus Shale, which is expected to contribute highly to growth. Recently, Chesapeake brought online the largest Marcellus well in history when it reached a peak rate of 61.8 million cubic feet per day (MMcf/d) after six days of production. The company plans to bring online 40 wells in the Marcellus in the second half of 2017 compared with 11 in the first half of 2017. Haynesville is likely to witness acceleration of activity in the second half of 2017 with plans to bring online 23 wells compared with 17 in the first half of 2017. The rampup of activity in the second half will drive production.
Though the stock is trading just above its 52-week low of $3.41, a Zacks Rank #3 and a firm Growth Score of B lends further optimism.
Adding to the positives, the company has also witnessed positive earnings estimate revisions. Over the past month, current year estimates have increased to 76 cents from 75 cents per share.
Houston, TX-based, Southwestern Energy Company (SWN - Free Report) engages in the exploration, development and production of natural gas and crude oil in the United States.
Southwestern Energy has invested heavily in the development of the fertile Marcellus play, where it held leases for approximately 337,300 net acres. Subsequently, the company increased acreage in the Marcellus Shale in Pennsylvania by acquiring stakes from other stakeholders. The company’s first advantage in the core Fayetteville Shale properties, which still comprises a considerable portion of its production, will support the upside. The economies of scale help the company drive growth rapidly. We believe the successful development of these plays would be a major positive.
Southwestern Energy is trading slightly above the 52 week low level of $4.90. The company also carries a Zacks Rank #3 and Growth Score of B. Moreover, the stock has been witnessing positive estimate revisions over the past one month. The current year consensus estimate of earnings has increased 4.5% over the same time frame.
Petroquest Energy Inc operates mainly as Gulf Coast oil and gas company. The stock is currently hovering around a 52-week low of $1.58.
However, the company has been undertaking several strategic initiatives to address opportunities for growth or improvements in financial and operational efficiency. This should bolster investor sentiments, going forward.
The stock is trading around its 52 week low level of $1.53. It has a Zacks Rank #3 and Growth Score of B. This exploration and production firm has seen positive estimate revisions over the past two months, which has resulted in the narrowing of its 2017 consensus loss estimate by 3.1% over the same time frame.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>