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The Zacks Analyst Blog Highlights: QEP Resources, Occidental Petroleum, Marathon Oil and Continental Resources
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For Immediate Release
Chicago, IL – June 9, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: QEP Resources Inc. , Occidental Petroleum (OXY - Free Report) , Marathon Oil Corporation (MRO - Free Report) and Continental Resources, Inc. .
Here are highlights from Monday’s Analyst Blog:
4 Oil Stocks to Gain as OPEC+ Eztends Production Cut Deal
The energy sector is stealing the show again, with oil gradually entering the bullish territory. The finalization of the crude production cut deal extension by OPEC and its allies has cheered energy investors since the commodity market is oversupplied. In fact, many analysts opine that if fuel demand continues to improve, since people are now returning to work, the crude market will turn supply deficit in 2021. This suggests the possibility of continuing crude price rally in the coming months.
Massive Rally in Crude Prices
The price of West Texas Intermediate (WTI) has touched $40-per-barrel mark and Brent crude is now approaching $45. In the past month, WTI oil surged 60%, while Brent crude jumped almost 45%. The agreement on Jun 6 between OPEC and its allies, known as OPEC+, to extend their record oil production cut through July has become one of the prime factors supporting the rally.
In April, OPEC+ decided to collectively curb production by 9.7 million barrels per day (Bbl/D) during May to June, an effort to recover coronavirus-hit oil prices. Notably, from July to December, the production cuts were due to taper off. However, until next month, the new accord has called for a daily collective cut of 9.6 million barrels.
Apart from the supply cut extension deal, the bullish oil market has also been supported by an upbeat American job report for the month of May – suggesting recovering fuel demand in the domestic market. Last month, employers added 2.5 million jobs, the maximum in a single month since 1948. Moreover, the unemployment rate declined to 13.3% from 14.7% in April.
Oil Producers to Regenerate Cashflow
The favorable crude pricing environment has brightened up prospects for energy players, especially oil explorers and producers. Notably, in the pre-market hours of Jun 8, oil stocks like QEP Resources Inc. surged.
Notably, in the last few months, energy players struggled to survive as the coronavirus pandemic dragged down global energy demand. To combat the pandemic, energy players cut dividend payments and curtailed capital spending. Occidental Petroleum, the largest oil producer in the Permian Basin, drastically reduced dividend by 99%, since the company has cut dividend payments twice in 2020.
Now, the crude rally is likely to give upstream energy firms some respite so that they can regenerate cashflows and strengthen their financials.
Stocks to Gain
It seems to be an opportune moment for energy investors to consider oil stocks.Here, we present one stock carrying a Zacks Rank #2 (Buy) that is well positioned to gain. There are three other stocks with a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
QEP Resources, Inc., headquartered in Denver, CO, is a leading oil explorer and producer with operations spreading across the Permian Basin in Texas and the Williston Basin in North Dakota. The stock, with a Zacks Rank #2, has witnessed upward earnings estimate revisions for 2020 in the past 30 days.
Marathon Oil Corporation, headquartered in Houston, TX, gained more than 20% in the pre-market hours of Jun 8. The oil producer, with operations in prolific shale plays like Permian, Eagle Ford and Bakken, currently carries a Zacks Rank #3 (Hold). The stock also witnessed upward estimate revisions for its 2020 bottom line in the past 30 days.
Occidental Petroleum Corp., headquartered in Houston, TX, jumped 19% in pre-market hours. In the past 30 days, the oil producer, carrying a Zacks Rank #3,witnessed upward estimate revisions for its 2020 bottom line.
Continental Resources, Inc., based in Oklahoma City, OK, is a leading oil producer with operations in the Bakken play of North Dakota and Montana. The #3 Ranked stock gained more than 11% in the pre-market hour.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: QEP Resources, Occidental Petroleum, Marathon Oil and Continental Resources
For Immediate Release
Chicago, IL – June 9, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: QEP Resources Inc. , Occidental Petroleum (OXY - Free Report) , Marathon Oil Corporation (MRO - Free Report) and Continental Resources, Inc. .
Here are highlights from Monday’s Analyst Blog:
4 Oil Stocks to Gain as OPEC+ Eztends Production Cut Deal
The energy sector is stealing the show again, with oil gradually entering the bullish territory. The finalization of the crude production cut deal extension by OPEC and its allies has cheered energy investors since the commodity market is oversupplied. In fact, many analysts opine that if fuel demand continues to improve, since people are now returning to work, the crude market will turn supply deficit in 2021. This suggests the possibility of continuing crude price rally in the coming months.
Massive Rally in Crude Prices
The price of West Texas Intermediate (WTI) has touched $40-per-barrel mark and Brent crude is now approaching $45. In the past month, WTI oil surged 60%, while Brent crude jumped almost 45%. The agreement on Jun 6 between OPEC and its allies, known as OPEC+, to extend their record oil production cut through July has become one of the prime factors supporting the rally.
In April, OPEC+ decided to collectively curb production by 9.7 million barrels per day (Bbl/D) during May to June, an effort to recover coronavirus-hit oil prices. Notably, from July to December, the production cuts were due to taper off. However, until next month, the new accord has called for a daily collective cut of 9.6 million barrels.
Apart from the supply cut extension deal, the bullish oil market has also been supported by an upbeat American job report for the month of May – suggesting recovering fuel demand in the domestic market. Last month, employers added 2.5 million jobs, the maximum in a single month since 1948. Moreover, the unemployment rate declined to 13.3% from 14.7% in April.
Oil Producers to Regenerate Cashflow
The favorable crude pricing environment has brightened up prospects for energy players, especially oil explorers and producers. Notably, in the pre-market hours of Jun 8, oil stocks like QEP Resources Inc. surged.
Notably, in the last few months, energy players struggled to survive as the coronavirus pandemic dragged down global energy demand. To combat the pandemic, energy players cut dividend payments and curtailed capital spending. Occidental Petroleum, the largest oil producer in the Permian Basin, drastically reduced dividend by 99%, since the company has cut dividend payments twice in 2020.
Now, the crude rally is likely to give upstream energy firms some respite so that they can regenerate cashflows and strengthen their financials.
Stocks to Gain
It seems to be an opportune moment for energy investors to consider oil stocks.Here, we present one stock carrying a Zacks Rank #2 (Buy) that is well positioned to gain. There are three other stocks with a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
QEP Resources, Inc., headquartered in Denver, CO, is a leading oil explorer and producer with operations spreading across the Permian Basin in Texas and the Williston Basin in North Dakota. The stock, with a Zacks Rank #2, has witnessed upward earnings estimate revisions for 2020 in the past 30 days.
Marathon Oil Corporation, headquartered in Houston, TX, gained more than 20% in the pre-market hours of Jun 8. The oil producer, with operations in prolific shale plays like Permian, Eagle Ford and Bakken, currently carries a Zacks Rank #3 (Hold). The stock also witnessed upward estimate revisions for its 2020 bottom line in the past 30 days.
Occidental Petroleum Corp., headquartered in Houston, TX, jumped 19% in pre-market hours. In the past 30 days, the oil producer, carrying a Zacks Rank #3,witnessed upward estimate revisions for its 2020 bottom line.
Continental Resources, Inc., based in Oklahoma City, OK, is a leading oil producer with operations in the Bakken play of North Dakota and Montana. The #3 Ranked stock gained more than 11% in the pre-market hour.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.