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The Zacks Analyst Blog Highlights: Flotek Industries, Nine Energy Service, Baytex Energy, Mammoth Energy Services and CNOOC

Zacks Equity Research
DG vs. TJX: Which Stock Is the Better Value Option?
DG vs. TJX: Which Stock Is the Better Value Option?

For Immediate Release

Chicago, IL – April 20, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Flotek Industries, Inc. FTK, Nine Energy Service, Inc. NINE, Baytex Energy Corp. BTE, Mammoth Energy Services, Inc. TUSK and CNOOC Limited CEO.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday’s Analyst Blog:

5 Top-Ranked Stocks as Oil Hits 3-Year High

On Wednesday, oil prices surged to peaks not witnessed since the end of 2014. The immediate trigger for this surge was a slump in U.S. crude inventories. Sector watchers also remained worried about whether lingering geopolitical tensions would lead to a drop in supplies from major oil exporting countries.

Meanwhile, reports emerged that Saudi officials were looking to push oil prices toward $80 per barrel ahead of the launch of the Aramco IPO. At the same time, demand at pumps is expected to jump over the next few weeks as summer driving season approaches. Adding oil stocks to your portfolios at this time looks like a smart option.

Slide in Inventories Helps U.S. Crude Smash $68-barrier

At the end of Wednesday, WTI crude closed 2.9% higher at $68.47. This was the first time since December 2014 that U.S. crude price ended above the $68 a barrel level. Meanwhile, Brent crude gained 2.7% to close at $73.48 a barrel, its best settlement since Nov 26, 2014. On the next day, OPEC had refused to arrest the decline in oil prices, a stance that it has reversed since then.

One of the immediate triggers for the surge in U.S. crude was a decline of 1.1 million barrels in U.S. crude oil inventories during the week ending Apr 13. Meanwhile, gasoline demand hit a record level of nearly 9.9 million barrels during the week, the highest level ever witnessed in April.  

Geopolitical Tensions Boost Crude Prices

Also fueling the rally in oil prices over the last few works are concerns that geopolitical tensions in the Middle East could disrupt crude supplies. The conflict in Syria had heightened after an air strike jointly conducted by the United States, France and the United Kingdom.

Rebel attacks by rebels from Yemen on Saudi Arabia have also served to heighten tensions. Meanwhile, industry watchers are waiting to see if the Trump administration decides to impose sanctions on Iran once again, post the May 12 deadline. Also, oil production in Venezuela remains crippled due to an ongoing economic crisis.

Our Choices

Some market watchers are characterizing the unexpected drop in U.S. crude inventories which boosted oil prices on Wednesday as a temporary phenomenon. But other factors are also working to boost oil prices higher. A high level of compliance with the OPEC production controls agreement and geopolitical tensions are working to ensure an uptrend in oil prices.

Further, with the summer driving season around the corner, prices at the pump are slated to rise substantially. Taking all these factors into account, it makes sense to pick select oil stocks at this point. However, picking winning stocks may be difficult.

This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. 

We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a VGM score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Flotek Industries, Inc. develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the oil and gas industries.

Flotek Industries’ projected growth rate for the current year is more than 100%.The Zacks Consensus Estimate for the current year has improved by 3.2% over the last 60 days.

Nine Energy Service, Inc. provides onshore completion and production services to unconventional oil and gas resource development.

Nine Energy Service’s expected earnings growth for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 34.1% over the last 30 days.

Baytex Energy Corp. acquires, develops and produces oil and natural gas in the Eagle Ford and the Western Canadian Sedimentary Basin.

Baytex Energy’s Zacks Consensus Estimate for the current year has improved by 3.3% over the last 30 days.

Mammoth Energy Services, Inc. is an integrated oilfield service company.

Mammoth Energy Services’ expected earnings growth for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 16.5% over the last 30 days.

CNOOC Limited is a company that engages primarily in the exploration, development and production of crude oil and natural gas offshore China.

FTI Consulting has a VGM Score of B. The company has expected earnings growth of 80.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 4.7% over the last 60 days.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CNOOC Limited (CEO) : Free Stock Analysis Report
Baytex Energy Corp (BTE) : Free Stock Analysis Report
Flotek Industries, Inc. (FTK) : Free Stock Analysis Report
MAMMOOTH ENERGY (TUSK) : Free Stock Analysis Report
Nine Energy Service, Inc. (NINE) : Free Stock Analysis Report
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