Tap the Crude Rally With These Three Promising Energy Stocks
Crude price determines the fate of almost all the companies belonging to the energy sector. The commodity price is now in its glorious days, making the outlook of Solaris Oilfield Infrastructure, Inc. SOI, Core Laboratories Inc. CLB and Evolution Petroleum Corporation EPM bright.
High Oil Price
The price of West Texas Intermediate crude is trading at more than $85-per-barrel mark, marking an extremely healthy oil pricing scenario, as it has recently touched a 10-month high mark. The recent decisions of Saudi Arabia and Russia to voluntarily extend oil production cuts until the end of the year, despite the commodity trading in bullish territory, are primarily aiding the crude rally.
The favorable crude price is making the exploration and production business extremely profitable. Higher upstream activities will increase demand for oilfield services since oilfield service players will guide explorers and producers in efficiently setting up oil and gas wells.
Given the backdrop, we are employing our proprietary Stock Screener to zero down on three prospective names that are well-poised to gain. One of the stocks sports a Zacks Rank #1 (Strong Buy), while the other two carry a Zacks Rank #2 (Buy).
3 Stocks in the Spotlight
Solaris Oilfield Infrastructure: More of patented equipment and systems of Solaris will likely be deployed to the prolific oil and gas basins in the United States. This is because favorable commodity prices will likely improve upstream activities, increasing demand for those equipment and systems. Currently, Solaris sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Core Laboratories: Being a well-known provider of patented reservoir description and production enhancement services, the company is well-positioned to grow, thanks to improving demand for reservoir description services. Core Lab, carrying a Zacks Rank of 2, is also focused on reducing its debt load.
Evolution Petroleum: The company is a well-known name in the upstream space, with investments in onshore oil and natural gas properties in the United States. The company’s production outlook seems bright since it has a long life and low decline asset bases with low-risk development inventories. Thanks to the low-risk assets and conservative acquisitions, Zacks #2 Ranked EPM has the capability of returning capital back to shareholders through growing dividends.
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Core Laboratories Inc. (CLB) : Free Stock Analysis Report
Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
Solaris Oilfield Infrastructure, Inc. (SOI) : Free Stock Analysis Report
