|Bid||11.12 x 41800|
|Ask||11.24 x 39400|
|Day's Range||11.16 - 11.41|
|52 Week Range||10.76 - 18.68|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-15.60%|
|Beta (5Y Monthly)||2.41|
|Expense Ratio (net)||0.35%|
With oil prices slumping to start 2020, the VanEck Vectors Oil Services ETF (OIH) is being pinched, but it could be nearly a point of capitulation while offering some value. OIH seeks to replicate as closely as possible the price and yield performance of the MVIS® US Listed Oil Services 25 Index. The index includes common stocks and depositary receipts of U.S. exchange-listed companies in the oil services sector.
It's dark days for oil right now, and Chesapeake Energy (NYSE:CHK) is no exception. CHK stock just broke to new lows, hitting 51 cents per share. With all sorts of quality energy and oil stocks under pressure, even "cheap" can't make a case for this name right now.Source: Casimiro PT / Shutterstock.com As if trading for about 50 cents a shares weren't enough confirmation, CHK stock is down 80% over the past 12 months. It's been a tough run and it highlights how dangerous it can be to hold onto stocks that are in a clear downtrend. There's good reason that they say stop-losses save lives and Chesapeake highlights why. Trading CHK StockIn September, it looked like CHK stock could actually get out of its funk. Shares were rallying off the $1.25 level, reclaiming $2 and pushing through its major moving averages. When that move ultimately failed though, it set the tone for what was to come.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSource: Chart courtesy of StockCharts.comBy November, shares burst below $1.25 support, crashing from a high of $1.59 to a 55-cent low in just a few weeks. As CHK stock rallied with the rest of the market in December, a very decisive stand took place: Chesapeake stock could not reclaim the $1 mark. It tried twice, topping at 98 cents and 96 cents, respectively. * 10 Stocks to Buy for Your Income-Generating Portfolio So far in 2020, CHK stock has continued to struggle. Shares are down six straight sessions to new lows and are lower in 11 of the past 13 sessions.Could Chesapeake shares reclaim the 55-cent low they just broke and rally to the declining 20-day and 50-day moving averages? Sure, and that'd be good for a 25-30% rally from current levels. Could it go even further, up to downtrend resistance (blue line), good for a 40%-plus move? Certainly.But just because it has the potential to play out doesn't mean it's a worthwhile investment. All Oil is Under PressureRight now, the entire oil space is under pressure. Energy stocks continue to push lower and even the strongest companies are struggling to advance their stocks. Just look at Exxon Mobil (NYSE:XOM), which is flirting with a move to its lowest level since 2010.This is not a time to have weak financials.The problem for Chesapeake? It's not making money while the income statement is shrinking instead of growing. Analysts expect a loss of 25 cents per share for fiscal 2019 as revenue sinks 14% to $8.8 billion. That's down big from the 90 cents per share in profit from the prior year. In 2020, estimates call for sales to fall another 8%, while losses expand to 30 cents per share.The income statement isn't inspiring, but the balance sheet is the most troubling. Current liabilities of $2.34 billion are significantly more than current assets of $1.4 billion. This suggests that CHK stock may have trouble meeting its short-term obligations.Total assets of $16.57 billion do outweigh total liabilities of $11.84 billion, but there is still dire concern about Chesapeake making good on its obligations. If that weren't the case, shares wouldn't trade for under a buck.That's where lacking profitability and a free cash flow deficit really sap confidence. Alternatives to ChesapeakeIf not CHK stock, then what? To be a buyer in the energy space, it first helps to be bullish on energy! The technicals surely don't say that's the case, but the truth is, we'll be dependent on oil and natural gas for quite some time. * 7 Biometrics Stocks That Will Help Shape the Next Decade Investors who then feel compelled to be a buyer of the space, may look to some of the long-lasting companies in the sector. There's always the Energy Select Sector SPDR Fund (NYSEARCA:XLE) or the VanEck Vectors Oil Services ETF (NYSEARCA:OIH) that offer a diversified approach.There's also long-time stalwarts like the aforementioned Exxon or Chevron (NYSE:CVX). Although neither is flourishing at the moment, they will be around 10 and 20 years from now.Others that have more flexibility, great assets and solid businesses include EOG Resources (NYSE:EOG), Pioneer Natural Resources (NYSE:PXD) and Concho Resources (NYSE:CXO).Some may prefer to average down as these out-of-favor stocks sink lower. Others may prefer to wait until the technicals start to show signs of bullish momentum. As long as you have a plan, do what works best for you.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Under-the-Radar European Stocks to Buy for 2020 * 7 Industries Using AI to Benefit Shareholders Around the World * 5 Chinese Stocks to Buy When Coronavirus Fears Fade The post Even This Cheap, It's Hard to Make a Case for Chesapeake Energy Stock appeared first on InvestorPlace.
Compared to the broader market, energy stocks weren't the stocks to own last year. The Energy Select Sector SPDR (NYSEARCA:XLE) rose just 11.7%, including dividends paid, against a 31.2% gain for the S&P 500.Also consider that the energy sector saw its weight within the S&P 500 dwindle to its lowest levels since the 1980's. Dow component Exxon Mobil (NYSE:XOM) dropped out of the top 10 S&P 500 names for the first time on record. That stock and rival Chevron (NYSE:CVX) yield an average of 4.60%, making them two of the "dogs of the Dow" for 2020.Increased adoption and falling costs for renewable energy sources coupled with the the persistent skewering of fossil fuel producers by the virtuous investing crowd, including some institutional investors, made for a perfect storm of difficulty for traditional energy equities last year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere is some good news to consider with energy exchange-traded funds this year, including the sector's status as a value destination, improving free cash flow among larger producers and an ongoing need for oil throughout the world. * 7 Top-Rated Stocks to Buy for a More Powerful Portfolio For investors looking to bet on better things for the energy sector this year, here are some energy ETFs to consider. Energy ETFs to Buy: Fidelity MSCI Energy Index ETF (FENY)Expense Ratio: 0.084%, or $8.40 annually per $10,000 investedThe Fidelity MSCI Energy Index ETF (NYSEARCA:FENY) is a solid idea for investors willing to make a long-term commitment to traditional energy names because the fund is the least expensive energy ETF on the market and is heavily allocated to higher quality fare, such as Exxon and Chevron.Another reason to consider big-name energy stocks, particularly in basket form as offered by FENY, is that the group is becoming more committed to shareholder rewards, such as buybacks and dividends to support stagnant price appreciation."Energy stocks have been out of favor for the five-year period ending October 31, 2019. Energy has been the worst-performing of the 11 sectors in the S&P 500 during that time, with an annualized return of -4.95%, and the only sector with a negative return," said Fidelity in a recent note. "Meanwhile, the S&P 500 index is up 10.78% per year over the same period. As a result, more energy companies have shifted attention from production to profitability and shareholder-friendly efforts, even amid historically low crude oil prices." Alerian Energy Infrastructure ETF (ENFR)Expense Ratio: 0.65%One part of the energy patch that's showing some strength early this year is the midstream. The Alerian Energy Infrastructure ETF (NYSEARCA:ENFR) is higher by 2.5% and is proving to be a more reliable bet than more traditional energy ETFs. That comes after midstream equities were the top performers in the energy sector in 2019.ENFR follows the Alerian Midstream Energy Select Index, one of the most widely followed midstream benchmarks. The midstream dedication is relevant at a time when those companies are working to reduce debt and burdensome incentive distribution rights (IDRs). * 7 Earnings Reports to Watch Next Week "Our long-term outlook for midstream oil and gas companies is unchanged, but we could change our fair value estimates depending on whether new and material investment projects are sanctioned in response," said Morningstar in a recent note. "We think midstream companies that could benefit from higher demand for export infrastructure and related pipelines, wider differentials, and higher demand for liquefied natural gas, given oil-linked contracts." VanEck Vectors Energy Income ETF (EINC)Expense Ratio: 0.45%The VanEck Vectors Energy Income ETF (NYSEARCA:EINC) is impressing on two fronts to start the new year. First, its 9.40% dividend is a whopper, even among energy ETFs designed to be income plays. Second, and more importantly, the fund is up 3% this month.EINC targets the MVIS North America Energy Infrastructure Index, "which is intended to track the overall performance of North American companies involved in the midstream energy segment, which includes MLPs, and corporations involved in oil and gas storage and transportation," according to VanEck.Although they're not integrated energy firms or energy and production companies, EINC components are levered to the growing U.S. energy export story."This significant growth in North American oil and gas production has increased the need for supporting infrastructure, including new pipelines connecting producing regions with demand centers and the coast for export," said VanEck in a recent note. "A 2018 study by the Interstate Natural Gas Association of America estimated that an investment of $521 billion in midstream energy infrastructure is needed in the U.S. and Canada by 2035." iShares Global Energy ETF (IXC)Expense Ratio: 0.46%The iShares Global Energy ETF (NYSEARCA:IXC) combines domestic oil giants, such as Exxon and Chevron, with international equivalents, including BP Plc (NYSE:BP), Royal Dutch Shell (NYSE:RDS.A) and France's Total (NYSE:TOT).Not only does that give the fund some geographic diversity, it offers investors deeper value and higher dividends, two traits applicable to European oil majors. IXC's ex-U.S. components offer some other benefits. * 10 Stocks to Buy as the 2020 Presidential Election Approaches "One of their big draws: Many non-US energy companies tend to have higher exposure to high-growth prospect drilling regions such as the Middle East, Asia Pacific and Africa than their stateside brethren -- not to mention that some are generous dividend payers, too," reports OilPrice.com. FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR)Expense Ratio: 0.46%The FlexShares Morningstar Global Upstream Natural Resources Index Fund (NYSEARCA:GUNR) can augment midstream energy ETFs because this fund focuses on the upstream segment. However, GUNR isn't a dedicated energy ETF. It also features exposure to materials and mining names, giving investors broader exposure to equities that can benefit from favorable commodities cycles.GUNR reflects the value propositions offered by the energy and materials sectors as more than 44% of the fund's holdings are classified as value stocks, more than triple its weight to equities with the growth designation. Another perk: GUNR devotes almost two-thirds of its roster to ex-U.S. stocks, giving it a yield of 3.22%, well in excess of the S&P 500.Overall, GUNR is a compelling option for investors seeking a broad approach to real assets."[I]nvestors continue to benefit from innovation within a variety of investment vehicles that focus on real assets," notes FlexShares. "Furthermore, strong demand for real assets is being met with an unprecedented supply of opportunities for investment, and we believe trends indicate that it will continue to grow. The Real Assets classification (e.g., timber, water, infrastructure, natural resources, etc.) is continually evolving, influenced not only by new asset types, but also regulatory and issuance changes." VanEck Vectors Oil Services ETF (OIH)Expense Ratio: 0.35%The VanEck Vectors Oil Services ETF (NYSEARCA:OIH) is an energy ETF for risk tolerant investors because oil services stocks are usually intimately correlated to crude prices. Translation: OIH is a great place to be if oil prices are rising, but if crude prices are falling, this fund can sting its owners.An issue facing oil services providers this year is lower spending forecasts by integrated oil companies and exploration and production firms in the face of low crude prices. A recent IHS Markit poll indicates global investors are comfortable betting on a "cyclical" rebound for energy stocks, a theme that if valid, should matriculate to oil services equities. * 10 Cheap Stocks to Buy Under $10 "Still, 67% of respondents believe that there is potential for the industry to experience a cyclical reversion in the stock market and come back into favor with equity investors," according to the research firm. "They believe that a rotation back into the energy sector is contingent on the supply-demand balance, conservative capital strategies and an improving outlook for the global macro and trade tensions." Global X MLP ETF (MLPA)Expense Ratio: 0.45%The Global X MLP ETF (NYSEARCA:MLPA) is another option for investors looking to access the midstream, a compelling and undervalued area of the energy patch."Midstream is one of the most undervalued asset classes across the equity universe. And the strength of the cash flows and dividend coverage makes for a more positive asset class outlook in 2020," according to Global X research.Importantly, dividends in the midstream space have more than adequate coverage, a positive for investors looking to tap MLPA for added income."Dividend coverage ratios for the asset class are cushioned by 30% on average and price-to-cash flow valuations are trading at early-2016 levels of 5x when oil prices were hitting rock bottom," said Global X.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post 7 Energy ETFs to Buy for a Rebound in 2020 appeared first on InvestorPlace.
Shares of Halliburton Co. surged 2.3% in premarket trading Tuesday, after the oil services company reported a fourth-quarter adjusted profit and revenue that fell from a year ago, but beat expectations. The company swung to a net loss of $1.65 billion, or $1.88 a share, from a profit of $664 million, or 76 cents a share, in the year-ago period. Excluding non-recurring items, such as a $2.2 billion impairment charge to adjust its cost structure to market conditions, adjusted earnings per share came to 32 cents, above the FactSet consensus of 29 cents. Revenue fell 6% to $5.19 billion, beating the FactSet consensus of $5.13 billion. Completion and production revenue decreased 13% to $3.06 billion, just shy of the FactSet consensus of $3.07 billion, while drilling and evaluation revenue rose 4% to $2.13 billion, to beat expectations of $2.08 billion. North America revenue fell 21% from the sequential third quarter to $2.3 billion, due primarily to reduced activity and pricing of land, primarily associated with pressure pumping and well construction. The stock has climbed 22.2% over the past three months through Friday, while the VanEck Vectors Oil Services ETF has rallied 10.1% and the S&P 500 has advanced 10.7%.
Shares of Schlumberger Ltd. rallied 1.7% in premarket trading Friday, after the oil services company reported fourth-quarter profit and revenue that exceeded expectations. Net income fell to $333 million, or 24 cents a share, from $538 million, or 39 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 39 cents, above the FactSet consensus of 37 cents. Revenue rose to $8.32 billion from $8.18 billion, beating the FactSet consensus of $8.16 billion, as revenue from its reservoir characterization, drilling, production and Cameron business segments all topped expectations. Free cash flow was $1.5 billion for the quarter and $2.7 billion for the year. "After a strong free cash flow performance in the second half of 2019, we are confident in our ability to further improve cash flow generation in 2020," said Chief Executive Olivier Le Peuch. The stock has run up 21.6% over the past three months through Thursday, while the VanEck Vectors Oil Services ETF has gained 13.9% and the S&P 500 has advanced 10.6%.
Easing U.S.-China trade feud, global monetary policy easing, lesser ambiguity surrounding Brexit, lower OPEC output, falling U.S. rigs and escalating Middle East tensions to boost oil prices in 2020.
Rising oil prices have lifted the VanEck Vectors Oil Services ETF (OIH) to a December gain of nearly 13% and some prudence when it comes to capital expenditures by oil services providers could be another assist for the ETF in 2020. OIH seeks to replicate as closely as possible the price and yield performance of the MVIS® US Listed Oil Services 25 Index. The index includes common stocks and depositary receipts of U.S. exchange-listed companies in the oil services sector.
An analysis from Ned Davis Research finds the best way to play the rising fortunes of stocks compared to those of bonds.
Don't look now, but the energy sector is starting to percolate. Apparently we've reached the stage of the market rally where they're coming after the dogs. But don't hate, participate! I'll show you how by offering three different energy stocks to buy.Here are a few stats that illustrate just how hilariously bad energy and oil stocks have been. I'm using the Energy Sector SPDR (NYSEARCA:XLE) as the benchmark, but other popular funds for the space like Oil & Gas Explore & Prod (NYSEARCA:XOP) and Oil Services ETF (NYSEARCA:OIH) have been equally dismal.While the S&P 500 is perched at record heights, XLE is still 40% off its 2014 peak. The XOP ETF is even worse. It's lower than it was when Armageddon came to town in 2008.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYear-to-date, XLE is only up 2.6% while the S&P 500 is up 27%. That's some serious relative weakness.And here's the stat to top them all. The entire energy sector has fallen so far that it's worth less than a single company -- Apple (NASDAQ:AAPL). If you're a contrarian, that above all else should have alarm bells going off in your head. The fear and loathing have reached epic levels. * 10 Stocks to Buy That Lost 8%-Plus in the Past Month But here's the thing. Many energy stocks are finally starting to catch a bid. Here are three of the best in the oil services industry worth buying. Oil Services Stocks to Buy: Schlumberger (SLB)Source: The thinkorswim® platform from TD Ameritrade The easiest way to identify candidates is to look at the top holdings of OIH. Schlumberger (NYSE:SLB) tops the list, accounting for some 20% of the fund. Its weekly trend looks atrocious, but signs of a bottom have emerged this quarter. The rebound has been strong enough to reverse the 20-day and 50-day moving averages higher and SLB stock even powered above its 200-day moving average for the first time since last July.We're now testing overhead resistance at $40. This price has kept a lid on the stock through the back half of the year, so vaulting above it will mark a big change in character.This quarter's bullish behavior has me in the bottom fishing mood. SLB share's low price tag makes them a prime candidate for naked puts.The Trade: Sell the Jan $37.50 put for 60 cents. Halliburton (HAL)Source: The thinkorswim® platform from TD Ameritrade Halliburton (NYSE:HAL) is the second-largest holding in OIH, accounting for about 12% of the fund. One glance at its chart reveals HAL is the veritable twin of SLB. They are virtually identical. So all of the bottoming characteristics identified on SLB are shared by HAL.So let's skip the redundant chart comments and elaborate on why naked puts are attractive here.The cheap price tag of SLB and HAL keep the margin requirement for short puts low enough to pump up the return on investment. By selling puts, we're obligating ourselves to buy shares at a discount to the current price. If the puts expire worthless due to the stock remaining bullish, we pocket the premium we received upfront. But if the stock drops, we get to buy shares of a company we wanted exposure to anyways.That's a win-win. * 7 Impressive Stocks to Buy Over $250 The Trade: Sell the Jan $24 puts for 50 cents. National Oilwell Varco (NOV)Source: The thinkorswim® platform from TD Ameritrade National Oilwell Varco (NYSE:NOV) rounds out today's list with a similar setup as its predecessors. NOV stock's recovery has been subtle but steady over the past few months. An ascending triangle has formed, reflecting a slight uptick in demand on each selloff. And now, NOV is knocking on the door of a major ceiling at $24.50.A break above it will signal the completion of its eight-month bottoming process and potentially spark the next leg of its nascent uptrend.Once again, naked puts are my play of choice if you're willing to bottom fish here.The Trade: Sell the Jan $23 puts for around 45 cents.As of this writing, Tyler Craig held bullish positions in OIH. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Biggest Investing Surprises of 2019 * 7 Impressive Stocks to Buy Over $250 * 4 Small-Cap Energy Stocks Ready to Explode The post 3 Energy Stocks to Buy appeared first on InvestorPlace.
Throughout 2019, talk of slowing global growth spurred talks of a worldwide recession that was backed up further by another reliable recession indicator—an inverted yield curve. “The stock/bond ratio has bottomed prior to the economy in each of the last seven global slowdowns,” Geisdorf wrote in an analysis.
Energy-related exchange traded funds were leading the charge on Friday after the Organization of Petroleum Exporting Countries and its allies committed to deep crude oil output cuts in an attempt to stymie ...
With oil prices flailing, some equity-based ETFs with often intimate correlations to crude are suffering as well. Oil services funds, including the VanEck Vectors Oil Service ETF (OIH) , prove that point. OIH, the largest oil services ETF, is lower by nearly 20% this year.
Energy sector ETFs surged Friday after crude oil prices rallied in response to the upbeat U.S. jobs data and Chinese manufacturing numbers. On Friday, the SPDR Oil & Gas Equipment & Services ETF (NYSEArca: ...
Energy ETFs are quite a scare this Halloween, thanks to a subdued earnings picture, operating woes, dismal demand outlook and downbeat stock market performance.
Energy-related ETFs climbed Friday on geopolitical risk and concerns over Middle East supply after an Iranian tanker near the Saudi Arabian coast was attacked by what the ship’s owner believed was a missile ...
Energy stocks, largely abandoned by investors this year even as oil prices have bounced back from their lows, finally could be set for a rebound. While the SPDR Energy Select Sector Fund (XLE) is down more than 1% on the year compared to the more than 16% gain of the S&P 500, Dubravko Lakos-Bujas, JPMorgan Chase & Co.’s (JPM) chief U.S. equity strategist, recently laid out five major reasons why oil and gas stocks were ready to surge, according to Business Insider. One of the surprising things this year has been the failure of energy stocks to rally along with the price of oil.