5 Best-Performing Stocks of the Top ETF of August
iShares U.S. Oil & Gas Exploration & Production ETF IEO topped the list of the best-performing U.S. equity ETFs in August, gaining about 15%. The rally was driven by a rise in oil price on potential supply disruptions, including the possibility of an OPEC+ output cut.
Although most of the stocks in IEO’s portfolio have delivered strong returns this month, a few have gained more than 20%. These include Centennial Resource Development CDEV, Denbury Inc. DEN, Comstock Resources CRK, Kosmos Energy KOS and Civitas Resources CIVI.
Saudi Arabia floated the possibility of an imminent output cut by the Organization of the Petroleum Exporting Countries and allies to balance the energy market. The move is expected to coincide with a boost in supply from Iran should it clinch a nuclear deal with the West. OPEC+ is already producing 2.9 million barrels less per day than its target, per the sources.
Additionally, unrest in Libya sparked concerns that the country could slide into a full-blown conflict and disrupt the oil supply. Further, the global oil supply could take a hit as the peak U.S. hurricane season approaches. However, a strong dollar, which hit a 20-year high after the Fed signaled that interest rates would be kept higher for longer to curb inflation, weighed on oil price (read: Dollar at 20-Year High: ETFs to Gain & Lose).
Let’s take a closer look at the fundamentals of IEO.
IEO in Focus
iShares U.S. Oil & Gas Exploration & Production ETF provides exposure to U.S. companies that are engaged in the exploration, production and distribution of oil and gas. It tracks the Dow Jones U.S. Select Oil Exploration & Production Index and holds 50 stocks in its basket. iShares U.S. Oil & Gas Exploration & Production ETF is concentrated on the top firm while other firms hold less than 9% share.
iShares U.S. Oil & Gas Exploration & Production ETF has AUM of $1 billion and trades in an average daily volume of 254,000 shares. The fund charges 39 bps in fees per year and has a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook (read: Energy ETFs Rally on Hopes of OPEC Output Cuts).
Below, we have highlighted the above-mentioned five stocks in the ETF with their respective positions in the fund’s basket:
Best-Performing Stocks of IEO
Centennial Resource is an independent oil and gas exploration and production company. It primarily develops unconventional hydrocarbon reserves in the Delaware Basin, which is part of the prolific Permian Basin. Centennial Resource Development has an estimated earnings growth rate of 198.5% for this year. It makes up for 0.2% share in the IEO basket and has soared 32.5% in a month.
Centennial Resource carries a Zacks Rank #3 (Hold) and has a VGM Score of A.
Denbury is an oil and natural gas company. It involved in exploitation, drilling and proven engineering extraction practices. Devon Energy has an estimated earnings growth rate of 167.6% for this year.
Denbury soared about 32.3% in August and makes up for a 0.6% share in the IEO basket. The stock has a Zacks Rank #3 and a VGM Score of B.
Comstock Resources is an independent energy company engaged in the acquisition, development, production and exploration of oil and natural gas properties. The stock has rallied 32% this month and makes up for 0.25% of the IEO portfolio.
Comstock Resources has an estimated earnings growth rate of 181% for this year. It has a Zacks Rank #3 and a VGM Score of A.
Kosmos Energy operates as an oil and gas exploration and production company focused on under-explored regions in Africa. The stock has jumped 24% in a month and accounts for a 0.46% share in the ETF (read: More Pain Ahead for Energy ETFs?).
Kosmos Energy has an estimated earnings growth rate of 1933% for this year. It has a Zacks Rank #3 and VGM Score of A.
Civitas Resources is a carbon neutral oil & gas producer and is focused on developing and producing crude oil, natural gas and natural gas liquids principally in Colorado's Denver-Julesburg Basin. The stock rose 22.7% in a month and has an estimated earnings growth rate of 265.5% for this year.
Civitas Resources currently carries a Zacks Rank #3 and has a VGM Score of A. It accounts for 0.68% allocation in the IEO basket.
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Comstock Resources, Inc. (CRK) : Free Stock Analysis Report
Kosmos Energy Ltd. (KOS) : Free Stock Analysis Report
iShares U.S. Oil & Gas Exploration & Production ETF (IEO): ETF Research Reports
Civitas Resources, Inc. (CIVI) : Free Stock Analysis Report
Centennial Resource Development (CDEV) : Free Stock Analysis Report
Denbury Inc. (DEN) : Free Stock Analysis Report
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