Oil and Gas Stocks Were FEZ’s Biggest Losers
Panic Sentiment for Crude Oil Dragged the Global Market Down
FEZ’s bottom stocks
On Monday, December 7, 2015, the stocks at the bottom of the SPDR Euro Stoxx 50 ETF (FEZ) were Repsol, Eni (EAA), Total (TOT), Banco Santander (SAN), and Deutsche Bank (DB). They yielded -5.5%, -2.4%, -1.4%, -1.7%, and -0.9%, respectively.
Oil and gas stock performances
The YTD (year-to-date) return of the Energy Select Sector SPDR ETF (XLE) and the United States Oil Fund (USO) were -21% and -43%, respectively, as of December 7, 2015. The YTD returns for oil and gas stocks Total, Eni, and Repsol were 0.75%, -1.7%, and -30%, respectively, on the same day.
Earlier in this series, we discussed why the oil and gas industry showed a huge fall on December 7, 2015. Now, let’s analyze the stocks’ performances using their moving averages.
The above chart shows the moving averages, forward target prices, and returns of Total, Eni, and Repsol. Total was trading 2%, 5%, and 7% below its 100-day, 50-day, and 20-day moving averages, respectively.
Eni was trading 5% below its 100-day and 50-day moving averages. It was trading 4% below its 20-day moving average. Repsol was trading 14%, 8%, and 9% below its 100-day, 50-day, and 20-day moving averages.
This shows that most of the oil and gas stocks were trading below their moving averages on December 7, 2015.
Analysts’ estimates
Analysts’ estimates indicate upsides of 11%, 12%, and 25% for Total, Eni, and Repsol, respectively, from their current levels as of December 7, 2015, over the next 12-month period.
In the next part, we’ll discuss how the Japanese market (EWJ) performed on December 7, 2015.
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