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Best Energy Stocks To Buy In June

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·2 min read
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Key Insights

  • WTI oil is trying to settle above the $120 level despite OPEC+ recent decision to increase oil production. 

  • Driving season and the end of lockdowns in China serve as bullish catalysts for oil markets. 

  • Exxon Mobil and Chevron are trading at 11-12 forward P/E and have good chances to continue their current bullish trend. 

WTI oil continues its attempts to settle above the $120 level, so energy stocks remain in high demand. Meanwhile, analyst estimates for major oil companies are moving higher, which could provide additional support to oil-related stocks.

Chevron

Analysts expect that Chevron will report earnings of $16.52 per share in 2022 and $14.24 per share in 2023, so the stock is trading at 12 forward P/E.

Chevron is already up by roughly 50% this year, but the stock remains relatively cheap. Analysts estimates for Chevron continue to improve, which is not surprising as WTI oil is trading near the $120 level.

The recent OPEC+ decision to increase production failed to put any material pressure on the oil market which reacts to the end of lockdowns in China. In this light, Chevron stock has a good chance to gain additional upside momentum in the upcoming weeks.

Exxon Mobil

Exxon Mobil is moving towards all-time highs that were reached back in 2014. Currently, the stock is trying to settle above the $100 level.

Analysts expect that the company will report earnings of $8.61 per share in the next year, so the stock is trading at 11 forward P/E, which is a bit cheaper in comparison with Chevron.

High oil prices and investors’ rush into energy-related assets remain the key drivers for Exxon Mobil stock. While Exxon Mobil is already up by about 60% in 2022, it will gain solid upside momentum in case WTI oil settles above the $120 level and moves towards yearly highs near the $130 level.

To keep up with the latest earnings updates, visit our earnings calendar.

This article was originally posted on FX Empire

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