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7 Cheap Energy Stocks to Buy as the Sector Lights Up

William Roth

U.S. equities are pushing higher on Monday thanks once again to the promise of more cheap money stimulus. The Dow Jones Industrial Average is rising fast back towards the 27,000 level, bouncing nicely off of its 200-day moving average.

The buyers’ focus seems to be on energy and financials, with the two sectors enjoying gains of 0.6%. Energy is in focus amid renewed tensions in the Middle East between Iran and the West after Tehran announced it was installing new nuclear centrifuges.

Here’s a look at 7 cheap energy stocks that are ready for new money:

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Chesapeake Energy (CHK)

Chesapeake Energy (NYSE:CHK) stock is emerging from its 50-day moving average for the first time since late April, setting up a reversal of the downtrend that resulted in a 50% decline off of its prior highs. Watch for a run at the 200-day moving average, which would be worth a gain of more than 40% from here.

The energy stock will next report results on October 29 before the bell. Analysts are looking for a loss of nine cents per share on revenues of $1.2 billion.


EnCana (ECA)

Encana (NYSE:ECA) stock is also emerging from a multi-month downtrend pattern, setting the stage for a run at its 200-day moving average that would be worth a gain of 25% from here. The company, based in Alberta, is focused on the development of energy resources throughout Canada.

The company will next report results on October 31 before the bell. Analysts are looking for earnings of 16 cents per share on revenues of $1.9 billion.


Denbury Resources (DNR)

Denbury (NYSE:DNR) stock, like the other energy stocks here, is also emerging from a multi-month downtrend pattern ahead of a likely return to its 200-day moving average. Such a move would be worth a gain of roughly 40% from here.

The company will next report results on November 7 before the bell. Analysts are looking for earnings of 9 cents per share on revenues of $324.4 million.


Transocean (RIG)

Transocean (NYSE:RIG) shares are rising to test their 50-day moving average, setting up a rally to the 200-day average that would be worth a gain of roughly 40% from here. The company is a services provider focused on the offshore space including ultra-deepwater.

The company will next report results on October 28 after the close. Analysts are looking for a loss of 35 cents per share on revenues of $772.5 million.


Halliburton (HAL)

Halliburton (NYSE:HAL) stock is also on the road to recovery, clamoring back towards its 50-day moving average in what looks like the preparation of a run at the 200-day average — which would be worth a gain of 30% from here.

The company will next report results on October 21 before the bell. Analysts are looking for earnings of 36 cents per share on revenues of $5.9 billion.


Schlumberger (SLB)

Schlumberger (NYSE:SLB) shares are up more than 5% as I write this to challenge its 50-day moving average. Watch for a run at the 200-day average, which coincides with the prior highs set in July, which would be worth a gain of more than 11% from here.

The company will next report results on October 18 before the bell. Analysts are looking for earnings of 41 cents per share on revenues of $8.5 billion.


Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) shares are challenging their 50-day moving average, setting up a run at the 200-day average and possible even the April highs that lie above for a total gain of as much as 13%. The company also pays a 4.9% dividend while you wait.

The company will next report results on November 1 before the bell. Analysts are looking for earnings of 93 cents per share on revenues of $65.2 billion.

As of this writing, the author held no positions in the aforementioned securities. 

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