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Here's Why Eni (E) is an Attractive Investment Bet Right Now

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·2 min read
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Eni SpA E has witnessed upward earnings estimate revisions for 2021 and 2022 in the past 30 days. This integrated energy company’s stock price has surged 33.6% year to date versus the energy sector’s rise of 30.3%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Factors Favoring the Stock

The West Texas Intermediate (WTI) crude price is approaching $80, highlighting a substantial improvement from the negative territory hit last April. Improving fuel demand on massive rollout of coronavirus vaccines is aiding the rally in crude price.

The Organization of the Petroleum Exporting Countries (OPEC) and a Russia-led group of oil producers, jointly called OPEC+, said that it will increase collective production by 400,000 barrels a day each month. Thus, the group has decided to stick to its previously agreed plan of gradually returning production to the pre-pandemic level.

With oil price’s persistent rise, most analysts expected more production increase from OPEC+. Instead, the group’s decision to continue increasing production in measured steps has primarily led WTI crude to hit the multi-year high mark. The massive crude price recovery is aiding Eni’s upstream energy business, since the company is targeting a compound annual production growth rate of 4% through 2024 since 2020. Eni’s another impressive plan for the upstream business is targeting new discoveries of 2 billion barrel of oil equivalent through 2024 since 2021.

Eni, sporting a Zacks Rank #1 (Strong Buy), is also leading the energy transition. The company has an ambitious plan of reaching 60 gigawatts (GW) of installed renewable energy capacity by 2050. This suggests a massive improvement from 1 GW of installed and sanctioned capacity last year. By 2050, it is planning for net-zero Scope 1, 2 and 3 greenhouse gas emissions.

Other Stocks to Consider

Other top-ranked players in the energy space include Whiting Petroleum Corporation WLL, Comstock Resources, Inc. CRK and Range Resources Corporation RRC. While Whiting Petroleum carries a Zacks Rank #2 (Buy), Comstock and Range Resources sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Comstock is expected to witness earnings growth of 378.3% in 2021.

Range Resources has seen upward earnings estimate revisions for 2021 in the past 30 days.


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Eni SpA (E) : Free Stock Analysis Report

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Whiting Petroleum Corporation (WLL) : Free Stock Analysis Report

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