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Reasons to Add TotalEnergies (TTE) to Your Portfolio Now

·3 min read

TotalEnergies SE’s TTE productive oil and gas assets across the globe, its focus on developing clean energy assets, systematic investments to strengthen operations and presence across the entire LNG chain are contributing to its strong performance.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for 2022 earnings per share is pegged at $12.56, suggesting an increase of 88.02% from the year-ago reported figure. The bottom-line estimates have moved up 11.6% in the past 60 days.

The consensus mark for 2023 earnings is pegged at $10.44 per share, which has moved up 7.4% in the past 60 days.

Surprise History, Dividend Yield and Earnings Growth

TotalEnergies’ trailing four-quarter earnings surprise is 16.99%, on average.

TTE’s dividend yield is currently pegged at 4.04%, which is much better than the S&P 500 group’s average of 1.72%.

Long-term (three to five years) earnings growth of the company is projected at 6.61%.

Investments & Emission Reduction

After investing nearly $13.3 billion in 2021, TTE is planning an investment of $15 billion for 2022. Nearly 25% of the planned capital investment will be allocated for renewable energy and electricity.

TotalEnergies is also investing in technologies that cut emissions. It strives to be a net-zero carbon emissions company by 2050. TotalEnergies has major renewable energy projects under construction and is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.

Return on Equity (ROE)

ROE is a measure of a company’s financial performance and shows how it is utilizing its funds. TotalEnergies’ ROE is currently pegged at 20.96%, better than the industry’s average of 6.18%. This indicates that the company is utilizing its funds more efficiently than its peers.

Price Performance

Over the past three months, the stock has gained 0.5% against its industry 9.4% decline.


Zacks Investment Research
Zacks Investment Research

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Other Stocks to Consider

Other top-ranked stocks in the same sector include Marathon Petroleum MPC, Philips 66 Corporation PSX, and Valero Energy VLO, each currently sporting a Zacks Rank #1.

Marathon Petroleum, Philips 66, and Valero Energy delivered an average earnings surprise of 64.9%, 33.9% and 84.3%, respectively, in the last four quarters.

The Zacks Consensus Estimate for 2022 earnings per share of Marathon Petroleum, Philips 66, and Valero Energy has moved up 52.6%, 45.9% and 49%, respectively, in the past 60 days.

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TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
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