Equinor ASA (EQNR - Free Report) recently agreed to a partnership with Microsoft Corp. (MSFT - Free Report) , which will devote its resources toward finding new solutions for the energy industry. Equinor’s IT section is expected to get a boost from the deal.
Equinor will bring its knowledge regarding the industry to the table, which will back Microsoft in reaching its goal. Moreover, the Redmond, WA-based software giant, Microsoft will build data center areas in Stavanger and Oslo, marking its entrance in Norway. It will help Equinor achieve a faster transition to the cloud, which in turn will upgrade the firm’s IT services and make its operations more cost-efficient.
The more than $100-million deal that spans for seven years, is anticipated to deliver innovative solutions. The deal is in line with Equinor’s ambition of ramping up value creation from the fields, where it operates. It will further help the Norwegian energy company in digitalizing operations. In March, the company expressed its intention of investing 1-2 billion kroner in digital technology by 2020.
Additionally, Equinor expects the move to help other industries in Norway as well, through appropriation of cloud technology. Services from the new data centers are expected to come online in late-2019.
Equinor has gained 62.9% in the past year compared with 37.3% growth of its industry.
Zacks Rank and Other Stocks to Consider
Currently, Equinor sports a Zacks Rank #1 (Strong Buy). Investors interested in the Energy sector can also opt for other top-ranked stocks like Continental Resources, Inc. (CLR - Free Report) and Delek US Holdings, Inc. (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oklahoma City, OK-based Continental Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 57.7% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 80.5%.
Brentwood, TN-based Delek is an energy company. The company’s top line is anticipated to improve 39.2% year over year and bottom line is expected to increase 293.7% in 2018.
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