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3 High-Performing Large-Cap Energy Stocks

- By Alberto Abaterusso

These large-cap energy companies have shown positive margins on the stock market over the past week, month, year and three years.

Further, these stocks have either a moderate-to-high financial strength rating from GuruFocus or an Ebitda margin topping the industry median.

Houston, Texas-based oil & gas midstream company Plains All American Pipeline LP (PAA) has climbed 0.4% over the last week, 3.5% over the past month, 18.3% so far this year, 5.5% over the last 52 weeks and 3.7% over the past three years through March 8. These margins exclude dividends paid.


The company has paid dividends since 1999. Currently, Plains All American Pipeline grants a cash quarterly dividend of 30 cents per ordinary share which, based on the share price at close March 8, leads to a forward dividend yield of 5.06%. This return is topping the dividend yield of 1.96% of the S&P 500 index at March 8.

The stock closed $23.71 per share on Friday for a market capitalization of $17.23 billion. The stock has a price-earnings ratio of 8.87, a price-book ratio of 1.5 compared to an industry median of 1.74 and an enterprise value-to-earnings before interest, taxes, depreciation and amortization ratio of 7.87 versus an industry median of 12.84.

Plains All American Pipeline has a financial strength rating of 6 out of 10 and a profitability and growth rating of 5 out of 10.

The Peter Lynch chart suggests the stock is undervalued on the market.

Wall Street released an overweight recommendation rating on shares of Plains All American Pipeline meaning analysts foresee the stock to outperform either the industry or the overall market with an average target price of $27.65 per share.

Houston, Texas-based oil & gas midstream company Cheniere Energy, Inc. (LNG) has gained 3.6% over the last week, 1.1% over the past month, 12% year to date, 22.7% over the last 52 weeks and 85.7% over the past three years through March 8.

The stock was trading around $66.29 per share on Friday for a market capitalization of $17.06 billion. The stock has a price-earnings ratio of 34.18, a price-sales ratio of 2.04 versus an industry median of 2.3 and an enterprise value-to-earnings before interest, taxes, depreciation and amortization ratio of 18.52 versus an industry median of 12.84.

Cheniere Energy has a low financial strength rating of 3 out of 10, but a high profitability and growth rating of 7 out of 10 which is mainly resulting from an EBITDA margin of 32% versus the industry median of 18%.

Cheniere Energy does not pay a dividend.

The Peter Lynch chart suggests the stock is not cheap.

Wall Street issued a recommendation rating of buy on shares of Cheniere Energy with a price target of $79.18 per share.

The Australian oil & gas explorer and producer Santos Limited ADR (SSLZY) has gained 1.6% over the last week, 11.1% over the past month, 32.5% year to date, 32.6% over the last 12 months and 81.8% over the past three years through March 8.

Shares of Santos Limited were trading around $5 per share on Friday for a market capitalization of $10.2 billion.

The stock has a price-earnings ratio of 16.16 versus an industry median of 11.83, a price-book ratio of 1.4 compared to an industry median of 1.3 and an enterprise value-to-earnings before interest, taxes, depreciation and amortization ratio of 6.8 versus an industry median of 7.99.

Santos Limited has a moderate score of 5 out of 10 for financial strength and for profitability and growth. Further, concerning the profitability, the Australian oil & gas operator is beating the industry median by 5.6 percentage points on EBITDA margin of 55.6%.

The company will pay an interim dividend of 6.2 cents per ordinary share to its shareholders on March 28. Will benefit shareholders that on Feb. 27 were on the company's record. The distribution, based on the share price at close on Friday, leads to a forward dividend yield of 2.48% versus an industry median of 3.52%.

The Peter Lynch chart suggests the stock is slightly overvalued.

Wall Street issued an overweight recommendation rating on shares of Santos Limited with an average target price of $5.12 per share. Thus, analysts predict the stock will outperform either the industry or the overall market within 52 weeks.

Disclosure: I have no positions in any securities mentioned in this article.

This article first appeared on GuruFocus.