|Bid||54.63 x 800|
|Ask||54.64 x 3200|
|Day's Range||54.24 - 55.10|
|52 Week Range||52.55 - 68.81|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-9.22%|
|Beta (5Y Monthly)||1.46|
|Expense Ratio (net)||0.13%|
The Nasdaq touched a record high, despite coronavirus fears weighing on the minds of investors. AEI Residential Fellow and former IMF official Desmond Lachman joins Yahoo FInance’s Seana Smith on The Ticker to discuss.
Despite rising risks and valuations for both stocks and bonds, investors are finding it painful to stay on the sidelines. In denial about the coronavirus?
Dividend-paying energy stocks, income-focused ETFs and closed-end funds, and taxable municipal bonds are among the plays investors can use.
Shares of Chesapeake Energy Corp. fell Thursday below the 50-cent mark for the first time in 26 years, after the International Energy Agency's downbeat assessment oil demand. The IEA cut its view on oil demand growth in 2020 to by 365,000 barrels a day to 825,000 barrels a day, the lowest level since 2011, as the coronavirus outbreak in China is expected to damp demand. That comes a day after the Organization of Petroleum Exporting Countries (OPEC) cut its 2020 growth outlook by 230,000 barrels a day to 990,000 barrels a day. The oil and natural gas company's stock fell 1.2% in afternoon trading to 49.83 cents. The last time the stock traded below four bits on an intraday basis was Jan. 21, 1994 and the last close below that mark was Jan. 19, 1994. Meanwhile, continuous crude oil futures rose 0.1%, and was headed for a third-straight gain after closing at a 13-month low on Monday. Natural gas futures fell 0.3%, after bouncing the past two days off Monday's 4-year low. Chesapeake's stock has plunged 80% over the past 12 months, while the SPDR Energy Select Sector ETF has shed 16% and the S&P 500 has gained 23%.
Energy was the worst-performing sector in January and the only to finish lower, saddling the Energy Select Sector SPDR Fund (XLE) and other energy ETFs with bad starts to 2020. While the short-term uncertainty has crimped the sector, energy stocks have been suffering under a long-term trend of sliding oil prices since 2014. XLE seeks to provide investment results that correspond generally to the price and yield performance of publicly traded equity securities of companies in the Energy Select Sector Index, which includes securities of companies from the following industries: oil, gas and consumable fuels; and energy equipment and services.
Kinder Morgan Inc. disclosed Wednesday that it plans a 25% increase to its dividend in 2020, to $1.25 a share from $1.00 a share. That increases the quarterly dividend rate to 31.25 cents from 25.00 cents. Based on Tuesday's stock closing price of $21.46 for the natural gas and oil transport company, the 2020 dividend rate would imply a dividend yield of 5.82%, well above the yield for the SPDR Energy Select Sector ETF of 4.13% and the implied yield for the S&P 500 of 1.80%, according to FactSet. Kinder Morgan's stock, which was still inactive in premarket trading, has gained 6.9% over the past three months, while the energy ETF has dropped 9.5% and the S&P 500 has advanced 8.6%.
Technically speaking, the S&P 500 has staged a bull-flag breakout, reaching record territory as the recent market volatility spike fades, writes Michael Ashbaugh.
The energy sector is again under siege with the Energy Select Sector SPDR Fund (XLE) is flirting with a double-digit year-to-date loss. The energy sector has fallen behind as crude oil prices weakened on concerns over the global economy as the coronavirus outbreak in China threatens a major component in the world economy. While the short-term uncertainty has crimped the sector, energy stocks have been suffering under a long-term trend of sliding oil prices since 2014.
It's always said that when it comes to ETFs, investors should “look under the hood” to examine ETF's holdings. The S&P 500 Ex-Energy ETF (SPXE), which provides exposure to S&P 500 companies with the exception of those included in the energy patch, can be seen as an ETF example of addition by subtraction, particularly with the energy sector struggling to start 2020. “An investment in the S&P 500 that excludes a particular sector gives you the flexibility to tailor your core U.S. equity exposure,” according to ProShares.
Energy markets and sector-related ETFs surged Wednesday, recouping some of the previous losses, despite reports of rising crude stocks. Among the best performing non-leveraged ETFs of Wednesday, the SPDR ...
With more than half the S&P 500 companies having reported fourth-quarter earnings, the earnings recession is now set to end. FactSet's blended earnings growth estimate, which includes already reported results and consensus analyst estimates of companies that haven't reported, is now showing a 0.09% gain from a year ago, compared with a negative 2.0% at the start of the earnings-reporting season. If the final results are positive, a three-quarter streak of negative growth would be snapped, and it only takes two-straight declines to define a recession. There's still a long way to go, as 275 of 505 S&P 500 companies, or 54.5%, have reported results, according to FactSet. The best sector performer has been utilities with 19.0% earnings growth, while energy has been the worst performer with a 42.7% decline. The S&P 500 gained 0.9% in morning trading, and has tacked on 3.0% this year.
The OPEC and its allies including Russia are reportedly in discussion for deeper output cuts by another 500,000 barrels a day to stabilize the coronavirus-infected oil price.
Shares of several oil and gas companies were trading lower Monday after reports emerged that Saudi Arabia is pushing for a short-term oil production cut in response to the impact of China’s coronavirus, which is impacting crude demand, The Wall Street Journal reported, citing OPEC officials. Brent crude futures were trading down 2% at $54.48 per barrel. Caroline Bain, chief commodities economist at Capital Economics, reports that commodity prices lost ground last week, as the rapid spread of the Wuhan coronavirus dented China’s near-term growth prospects.
Earnings from Exxon Mobil and Chevron aggravated concerns of the energy sector, which has been struggling from demand slowdown due to the coronavirus outbreak.
Shares of Exxon Mobil Corp. fell 0.7% in premarket trading Monday, extending losses toward a fresh 9 1/2-year low, after Goldman Sachs said it's time to sell, citing a "challenged" free cash flow outlook and long-term returns on capital employed (ROCE). Analyst Neil Mehta cut his rating on the oil giant to sell, after being at neutral for at least the past three years, and slashed his stock price target to $59 from $72. Mehta said he sees "clear downside risk" to Exxon's stated goal of 15% ROCE for 2025, as his financial models are now pointing to 8% ROCE in 2025, citing "a combination of lower downstream margin assumptions, lower crude price forecasts and risk around execution/capture rates." He also expects downstream and natural gas prices pressuring earnings power over the medium term. The stock dropped 4.1% on Friday to close at the lowest level since September 2010 after the Exxon reported fourth-quarter earnings that missed expectations. The stock has lost ground on 12 of the past 13 sessions through Friday, tumbling 10.8% over the past three months. In comparison, the SPDR Energy Select Sector ETF has declined 9.9% the past three months and the Dow Jones Industrial Average has gained 3.3%.
Here are some of the assets and sectors that the novel coronavirus has impacted so far, since the infection was noticed Dec. 31.
Energy-related ETFs lagged behind the market to kick off the new year, with the energy sector on pace for its worst January turnout since 2008. The Energy Select Sector SPDR Fund (XLE) has already been underperforming the broader market as it dipped 8.1% so far in the new year, compared to the S&P 500’s 1.7% gain. The energy sector has fallen behind as crude oil prices weakened on concerns over the global economy as the coronavirus outbreak in China threatens a major component in the world economy.
Let's delve into the earnings picture of Exxon Mobil and Chevron that dominate the popular ETFs portfolio and have the power to move the funds up or down in the coming days.
Energy stocks were suffering a broad selloff Friday, as disappointing earnings reports from the industry leaders and further declines in oil prices took a toll. The SPDR Energy Select Sector ETF dropped 2.9% toward a four-year low, with 27 of 28 components losing ground. Among the more-active components, shares of Exxon Mobil Corp. slumped 3.6% and Chevron Corp. shed 3.5% after both companies reported earnings that missed expectations, according to FactSet. Meanwhile, crude oil futures slumped 0.9% toward a near 6-month low amid demand concerns as the coronavirus spreads. Crude futures have not tumbled 15.5% this month. Natural gas futures bounced 1.2%, after closing at a four-year low on Thursday. The energy ETF has now lost 7.6% over the past three months, while the Dow Jones Industrial Average has advanced 5.4%.
Shares of Chevron Corp. slumped 1.3% in premarket trading Friday, after the oil giant swung to large fourth-quarter profit, although adjusted results showed a profit that topped expectations, while revenue fell below forecasts. The net loss was $6.61 billion, or $3.51 a share, after net income of $3.73 billion, or $1.95 a share, in the year-ago period. Excluding non-recurring items, such as $10.4 billion in impairments and write-offs associated with Appalachia shale, Kitimat LNG, Big Foot and other projects, adjusted earnings per share came to $1.49, above the FactSet consensus of $1.47. Revenue dropped 14% to $36.35 billion, missing the FactSet consensus of $38.96 billion. Net oil-equivalent production was 3.08 million barrels per day, flat from a year ago and slightly below the FactSet consensus of 3.10 million barrels per day. The average sales price per barrel of crude oil and natural gas liquids was $47 in the fourth quarter, down from $56 a year ago, while the average price of natural gas was $1.10 per thousand cubic feet, down from $2.01 last year. Chevron's stock has dropped 4.1% over the past three months through Thursday, while the SPDR Energy Select Sector ETF has shed 4.8% and the S&P 500 has gained 8.1%.
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.
Earnings season is well underway, and industrial giant Caterpillar and energy companies Chevron and Exxon Mobil will round out the week’s reports when they deliver quarterly results ahead of the market open.