The Zacks Analyst Blog Highlights USA Compression Partners, Sunoco and CVR Energy
For Immediate Release
Chicago, IL – September 1, 2023 – 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: USA Compression Partners LP USAC, Sunoco LP SUN and CVR Energy Inc. CVI.
Here are highlights from Thursday’s Analyst Blog:
3 Solid Dividend Energy Stocks That Surged Since the Pandemic
We have come a long way since the onset of the pandemic. The initial period, when there were no vaccines, saw an environment of heightened uncertainties. The commodity's price plunged to a negative $36.98 per barrel on Apr 20, 2020.
However, with the rapid developments of vaccines by scientists, which led to the gradual opening of the economies, the pricing scenario of West Texas Intermediate crude improved drastically over time to reach $123.64 per barrel on Mar 8, 2022. Oil price data are per the U.S. Energy Information Administration ("EIA") and the commodity is currently trading at more than $80 per barrel.
Per the latest short-term energy outlook of EIA, the West Texas Intermediate Spot Average price and Henry Hub spot average price will continue to improve in the second half of this year, brightening the outlook for oil and gas exploration and production companies. This has also increased the demand for natural gas compression services.
Amid the backdrop, we have employed our proprietary stock screener to zero in on three stocks that not only witnessed a massive gain since the pandemic era (since March-end, 2020) but are also paying a handsome dividend yield, at least higher than the 3.6% yield of the composite stocks belonging to the energy sector.
Two of the stocks sport a Zacks Rank #1 (Strong Buy), while the other carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
3 Stocks in The Spotlight
A continuation of strong market demand for compression services is aiding USA Compression Partners LP since it is among the leaders in providing natural gas compression services in the country. USA Compression Partners' stable cashflows are backed by rising producer volumes and its credit-worthy customer base. USAC, with a Zacks Rank of 1, offers a dividend yield of 9.7% and has soared a whopping 336% since end of first-quarter 2020. (Check USA Compression's dividend history here).
Sunoco LP, the largest independent fuel distributor in the United States,has a stable business model and has relatively lower exposure to commodity price volatility. This is because it distributes fuel to branded distributors under long-term contracts. Zacks #2 Ranked Sunoco currently has a 7.4% dividend yield and has skyrocketed more than 200% since the end of the first quarter of 2020. (Check Sunoco's dividend history here).
Having direct access to prolific crude oil fields in the Anadarko and Arkoma Basins, leading petroleum refiner CVR Energy Inc. is well-poised to grow. #1 Ranked CVI is leveraging its strong refining fundamentals, driving its cashflows and earnings momentum. Currently, the stock offers a dividend yield of 6.1% and has jumped more than 105% since March-end 2020. (Check CVR Energy's dividend history here).
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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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Sunoco LP (SUN) : Free Stock Analysis Report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
USA Compression Partners, LP (USAC) : Free Stock Analysis Report
