|Bid||15.60 x 1400|
|Ask||16.92 x 800|
|Day's Range||15.96 - 16.38|
|52 Week Range||12.23 - 35.03|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-46.76%|
|Beta (5Y Monthly)||1.30|
|Expense Ratio (net)||0.46%|
Now may be the time to grab some oil stocks on the cheap. The prices of oil and the stocks of the companies that drill for it have been smashed by news of the coronavirus.
Energy stocks and exchange-traded funds (ETFs) were a miserable bet in 2019. Indeed, the energy sector was the worst-performing sector by a mile, gaining less than 5% - far below the S&P; 500's 29% return, and significantly lagging even the second worst sector, health care (18%).However, despite tepid analyst outlooks for oil and gas prices in 2020, energy ETFs and individual stocks are suddenly being thrust in the spotlight once more.On Jan. 2, the Pentagon confirmed that the U.S. military killed Qasem Soleimani - a top Iranian general who headed the Islamic Revolutionary Guard Corps' elite Quds Force - with a drone airstrike in Iraq. While the Pentagon said the attack was meant to deter "future Iranian attack plans," Iran nonetheless has vowed "severe revenge." The clear, abrupt escalation in Middle East tensions immediately sent oil prices higher in response.Whether oil continues to climb is unclear. Tensions could de-escalate. Also, American fracking has changed the playing field. "The major potential risk - to oil markets - is mitigated by the fact that the U.S. is now the largest producer of oil and essentially approaching Energy independence," says Brad McMillan, Chief Investment Officer for Commonwealth Financial Network. "Our oil supplies are much less vulnerable than they were, and the availability of oil exports from the U.S. means that other countries have an alternative source." However, if the conflict worsens - especially if oil tankers and infrastructure are targeted in any violence - oil might continue to spike, regardless.Here, we explore five energy ETFs to buy to take advantage of higher oil prices. But approach them with caution. Just like increases in crude-oil prices should benefit each of these funds in one way or another, declines in oil have weighed on them in the past, and likely would again. SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020
The Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy ETF, is up less than three percent this year, underscoring the point that energy is one of the worst-performing groups in ...
The iShares Global Energy ETF (IXC) is up 9.14% year-to-date. Not a bad performance compared to some other equity-based energy ETFs, but it still lags what the S&P 500 has returned this year. With IXC sporting a trailing 12-month dividend yield of almost 4% and some analysts bullish on global oil names, such as BP Plc (BP), Royal Dutch Shell (RDS-A) and France’s Total (TOT), the iShares fund could offer some upside in 2020.
This article was originally published on ETFTrends.com. The energy sector has had its share of struggles this year, but there are some points in favor ETFs dedicated to this group, including value tilts and above-average dividend yields. The $868 million IXC, which tracks the &P Global 1200 Energy Sector Index and holds 62 stocks, is higher by nearly 4% over the past week, an impressive showing when considering it was accrued against the backdrop of concerning supply/demand headlines.
If you are looking to diversify your portfolio, RBC Capital may have the answer. Since its inception in February 2013, the RBC Global Energy Best Ideas List is up 22.3% compared to the S&P Global Energy Sector ETF (NYSEARCA:IXC) up 0.6%.Despite news that the oil sector is on shaky ground right now, there are still stocks worth a closer look."In our opinion, if you're investing in energy stocks, it's all about being selective and finding that right entry point, and there's lots of companies today that are being unfairly punished," Strategic Wealth Partners President and CEO Mark Tepper told CNBC earlier this month.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks Under $5 to Buy for Fall Here are five great energy stocks on the firm's current best ideas list. I also take a look at how each stock performs on a Street-wide basis. Two of the stocks score a stellar "Strong Buy" consensus and three stocks are at "Moderate Buy." Let's take a closer look at these top picks now: Energy Stocks to Buy: Oneok (OKE)Source: Casimiro PT / Shutterstock.com Oneok (NYSE:OKE) is one of RBC Capital's favorite midstream energy stocks. OKE owns of one of the United States' key natural gas liquids systems. That's alongside an extensive network of natural gas gathering, processing, storage and transportation assets."We forecast strong growth over the next few years and meaningful de- leveraging," RBC Capital's Elvira Scotto said Aug. 1. Following another solid earnings report, she ramped up her OKE price target from $72 to $83. A premium valuation is warranted says Scotto given Oneok's simplified structure, fee-based earnings and no near-term equity needs.Bear in mind that Scotto falls in the Top 100 analysts for her stellar stock picking track record."Importantly, with large scale growth projects coming online through 1Q20, OKE has reiterated its greater than 20% EBITDA growth expectation in 2020 vs 2019 midpoint EBITDA guidance," Scotto added.Overall the Street has a cautiously optimistic outlook on OKE stock. We are talking about a "Moderate Buy" consensus, with three recent buy ratings and two hold ratings. The average price target of $77 suggests 11% upside potential. Interested in Oneok stock? Get a free OKE Stock Research Report. TC Energy (TRP)Source: Brett Holmes / Shutterstock.com TC Energy (NYSE:TRP) is a brand-new addition to RBC Capital's best ideas list. In its August report, RBC highlighted this utilities and infrastructure name as an intriguing investing opportunity."We add TRP to the list this month, as we believe the stock to be the steady, defensive choice in North American midstream given its high-quality cash flows underpinned primarily by regulated assets and long-term take-or-pay contracts," RBC Capital analyst Robert Kwan said.This five-star analyst ranks in at an impressive No. 131 out of over 5,200 tracked analysts. He believes that TRP's extensive North American asset footprint provides numerous avenues for growth via small to medium-sized projects. According to Kwan, this provides visibility to meet the company's target of an 8%-10% dividend compound annual growth rate through 2021. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What "We also believe that TRP is starting to receive credit for its improving funding outlook following significant non-core asset monetizations and the delay of Keystone XL," Kwan added.With four out of five analysts calling TRP a "buy," the stock shows a firm "Strong Buy" consensus. Get the TRP Stock Research Report. Parsley Energy (PE)Source: Shutterstock Parsley Energy (NYSE:PE) is a top U.S. exploration and production pick for RBC Capital. The company is focused in the lucrative Permian Basin and trades at an attractive valuation according to the Street. That's on top of superior production growth (20% in 2019 estimates and 16% in 2020 estimates)."We believe PE shares should outperform the company's peer group over the next 12 months" writes RBC Capital's Scott Hanold. "PE's production growth profile, balance sheet, and oil hedge book are best-in-class and differentiated from peers." Indeed, the stock has surged 16% in just the last five days after revealing positive free cash flow for Q2.In particular, the Permian Basin's Wolfcamp formation wells generate strong returns at strip prices with strong volumes. "We see valuation upside potential in the Wolfcamp C, Lower Spraberry and Delaware Permian delineation, in addition to improving economics from a transition to pad development and improving operational efficiencies," Hanold told investors.Out of seven analysts covering PE stock, five are bullish while two remain on the sidelines. As a result the consensus for this energy stock works out at "Moderate Buy." The average analyst price target of $24 translates into sizable upside potential of over 45%. Get the PE Stock Research Report. TechnipFMC (FTI)Source: abu emran / Shutterstock.com Welcome to a top-notch investing opportunity among energy stocks. RBC Capital has just added TechnipFMC (NYSE:FTI) to its best ideas list. Formed through the 2017 merger of FMC Technologies and Technip, FTI is a global leader in subsea, onshore, offshore and surface projects."Longer term, FTI is well positioned to differentially benefit from increased Subsea FIDs [final investment decisions] and burgeoning energy infrastructure spend for LNG [liquified natural gas] and petrochemicals," explains RBC Capital's Kurt Hallead. He has a $38 price target on the stock (57% upside potential).Outlook for the subsea industry continues to improve, says Hallead. And higher levels of client engagement and project tendering will boost FTI stock. Meanwhile, Technip continues to ride the LNG wave."LNG outlook remains strong," Hallead said. "[The] company is tracking more than 20 projects in the global LNG market and has identified potential for new projects to be sanctioned over the next 18-24 months." * 7 Safe Dividend Stocks for Investors to Buy Right Now Encouragingly FTI also boasts a "Strong Buy" analyst consensus right now. In the last three months, six analysts have recommended snapping up FTI stock. Only one analyst is staying on the sidelines. We can also see that the average analyst price target of $31 indicates 32% upside potential. Get the FTI Stock Research Report. Encana (ECA)Source: IgorGolovniov / Shutterstock.com Last but not least in this list of energy stocks comes Encana (NYSE:ECA) -- a relative newcomer to the firm's best ideas list. In fact, this Canadian integrated, exploration and production, and oil sands company was the only new stock addition from RBC Capital's July report."Our decision to add Encana Corporation is, in part, driven by its attractive relative valuation (vs. our North American Senior E&P peer group), with the stock trading at a discounted 2019 estimated debt-adjusted cash flow multiple -- despite an above-average free cash flow yield" explained the firm back in July.What's more, Encana offers investors a slice of premium real estate. With its Newfield Exploration merger closing in the first quarter, market focus is now on Encana's operating momentum in the Permian, STACK and Montney regions. "We believe the company has some of the best real estate on the block, when it comes to North American resource plays, and possesses strong execution capability" says RBC Capital's Gregory Pardy.Plus Encana has signaled that it has already achieved its targeted cost savings of $1 million per well in the STACK in connection. Pardy has a $9 price target on the stock, suggesting prices can more than double in the coming months.Nonetheless analysts are divided on ECA stock's outlook. Two analysts rate the stock a buy while two rate the stock a hold. Their $7 average price target suggests upside potential of 62%. Get the ECA Stock Research Report.TipRanks offers investors the latest insight into eight different sectors by tracking the activity of over 5,000 Wall Street analysts. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post 5 Great Energy Stocks to Buy Right Now appeared first on InvestorPlace.
Oil prices continue sliding and scores of equity-based energy sector exchange traded funds are getting caught up in that tumble. That includes the iShares Global Energy ETF (NYSEArca: IXC). IXC offers ...
This past Memorial Day weekend, Americans were greeted with something they haven’t seen in years — namely, $3 per gallon gasoline. These prices for gasoline have come on the back of higher crude oil prices. With supplies low and demand continuing to rise, Brent-benchmarked crude oil has now eclipse $80 per barrel, while West Texas Intermediate is north of $70.
In the week ending May 18, natural gas inventories rose by 91 Bcf (billion cubic feet) to 1,629 Bcf—based on the EIA’s (U.S. Energy Information Administration) data announced on May 24. The increase was 2 Bcf less than what a survey by S&P Global Platts expected. On May 24, natural gas July futures rose 0.5%.
According to the EIA (U.S. Energy Information Administration), Cushing inventories fell for the first time in five weeks, by 1.1 MMbbls (million barrels) to 36.1 MMbbls between May 11 and 18, and by ~29.4 MMbbls (45%) year-over-year. Inventories and WTI crude oil prices are usually inversely related. WTI crude oil futures have risen ~38% since May 18, 2017, and the iShares Global Energy ETF (IXC) and the Energy Select Sector SPDR ETF (XLE) have risen ~17% and ~14.7%, respectively.
In the week ending May 11, natural gas inventories rose by 106 Bcf (billion cubic feet) to 1,538 Bcf—based on the EIA’s (U.S. Energy Information Administration) data announced on May 17. The rise was 2 Bcf more than the consensus estimate compiled by S&P Global Platts. On May 17, natural gas June futures rose 1.6%.
TechnipFMC’s (FTI) cash flow from operating activities (or CFO) was negative in the first quarter and declined sharply year-over-year. It generated -$201 million of CFO in the first quarter. Year-over-year, its revenues declined following its subsea project completions in Africa and project completions in its Onshore-Offshore segment.
The EIA estimates that Cushing inventories increased by 0.1 MMbbls (million barrels) to 37.2 MMbbls on May 4–11. Cushing inventories were near the highest level since January 19. However, the inventories at the storage hub have declined by ~29 MMbbls or 43.9% YoY (year-over-year).
According to the EIA, Cushing inventories increased by 1.4 MMbbls (million barrels) to 37.2 MMbbls on April 27–May 4. Cushing inventories were near the highest level since January 19. However, the inventories have declined by ~29.1 MMbbls or 44% year-over-year.
In this part, we’ll discuss Baker Hughes, a GE Company (BHGE), and National Oilwell Varco’s (NOV) FCF (free cash flow) growth in 1Q18. FCF is the CFO (cash flow from operations) less the capex.
In the week ending April 27, natural gas inventories rose by 62 Bcf (billion cubic feet) to 1,343 Bcf—based on the EIA’s (U.S. Energy Information Administration) data announced on May 3. The rise was 15 Bcf more than the market’s expectation. On May 3, natural gas June futures fell 1% due to bearish inventory data.
The EIA estimates that Cushing inventories increased by 0.4 MMbbls (million barrels) to 35.7 MMbbls on April 20–27. Cushing inventories also rose for the seventh time in eight weeks. However, the inventories dropped by ~31 MMbbls or 46% YoY (year-over-year).
In the week ending April 27, US crude oil inventories rose by ~6.2 MMbbls (million barrels) to ~436 MMbbls. However, the market expected a rise of 1 MMbbls in the EIA’s data on May 2. On the same day, US crude oil June futures rose 1%. Concerns about the US imposing sanctions on Iran could have helped oil ignore the bearish inventory data.
In this part, we’ll discuss Schlumberger (SLB) and Halliburton’s (HAL) FCF (free cash flow) growth. FCF is the CFO (cash flow from operations) less the capex.
In the week ending April 20, natural gas inventories declined by 18 Bcf (billion cubic feet) to 1,281 Bcf—based on the EIA’s (U.S. Energy Information Administration) data announced on April 26. The fall was 7 Bcf more than the market’s expectation. On April 26, natural gas June futures rose 1.1% due to the bullish inventory data.
In the week ending April 20, US crude oil inventories rose by ~2.17 MMbbls (million barrels) to ~429.7 MMbbls. However, the market expected a fall of 1.6 MMbbls in the EIA’s data on April 25. On the same day, US crude oil June futures rose 0.5%. Concerns about the US imposing sanctions on Iran could have helped oil ignore the bearish inventory data.
Market surveys estimate that Cushing inventories could have increased on April 20–27. A larger-than-expected increase in Cushing inventories could pressure crude oil prices.