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The Zacks Analyst Blog Highlights: Pioneer Natural Resources, Chevron, Talos Energy and Murphy Oil

Zacks Equity Research

For Immediate Release

Chicago, IL – January 22, 2020 – 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: Pioneer Natural Resources Company PXD, Chevron Corporation CVX, Talos Energy TALO and Murphy Oil Corporation MUR.

Here are highlights from Tuesday’s Analyst Blog:

4 Best Oil-Energy Stocks for Value Investors in 2020

Investors continued to steer clear of the Energy sector as companies in the space have been persistently displaying poor performance. However, there has been a transition in the sector with many institutional investors agreeing that the space is getting lucrative again.

Energy Sector Underperforms S&P 500

Over the past five years, the Zacks Oil - Energy sector has significantly underperformed the S&P 500 index. The sector has declined 8.2% over the period, against the index’s 83.4% gain. In fact, investors are refraining from investing in the sector as there has been considerable volatility in commodity prices, unimpressive returns from companies as well a supply glut in the market — as revealed by institutional and private equity investors interviewed by IHS Markit. 

In terms of market cap weightage in the S&P 500 index, the Energy sector has shrunk to 5% in 2019 from 15% in 1990, per CNBC. The fall came despite a boom in U.S. shale oil and natural gas production, which backed the United States’ energy independence.

Things Are Looking Up

Although the Energy sector has been losing investor faith, majority of the respondents interviewed by IHS Markit believe that the space has every potential to become a lucrative investment area again. This is because explorers are chalking out conservative capital budgets since they are focusing more on investors’ returns rather than production.

Eventually, shale oil and gas production growth is set to decelerate which along with deepening cuts by OPEC will take care of the supply glut. Moreover, the phase-one trade deal between the United States and China is likely to drive global energy demand.

Stocks to Make Merry

With things looking up for the Energy sector, majority of the institutional and private equity investors believe the space is undervalued. Since it would be ideal for traders to seek undervalued energy stocks, we have used the Zacks Stock Screener to narrow down on stocks with solid prospects, sporting a Zacks Rank #1 (Strong Buy) or 2 (Buy) along with Value Score of B.

Headquartered in Irving, TX, Pioneer Natural Resources Company is a pure-play producer in the Permian basin — the most prolific oil resource in the United States. In the Midland basin, it has the largest acreage position with operations across 750,000 gross acres.

In 2020, the #2 Ranked stock is likely to see earnings growth of 18.2%.

Chevron Corporation, headquartered in San Ramon, CA, is among the largest integrated energy companies in the world.

In 2020, the Zacks Rank #2 stock is likely to see earnings growth almost 6%.

Headquartered in Houston, TX, Talos Energy is a leading offshore explorer with strong focus in the U.S. Gulf of Mexico. In 2020, the stock with a Zacks Rank of 1 is likely to see earnings growth of almost 14%.

Murphy Oil Corporation, headquartered in El Dorado, AR, is a leading explorer and producer, with focus on onshore North American resources and offshore Gulf of Mexico. In 2020, the stock with a Zacks Rank of 1 is likely to see earnings growth almost 12%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

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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.


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Chevron Corporation (CVX) : Free Stock Analysis Report
 
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
Murphy Oil Corporation (MUR) : Free Stock Analysis Report
 
Stone Energy Corporation (TALO) : Free Stock Analysis Report
 
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