Gas Stocks To Buy Now
However, the Kremlin upped the ante recently, choking off critical supplies to Europe. In turn, the region may face an energy crisis. At the same time, the Ukrainians probably realize that this represents a negotiating ploy. Therefore, their dramatic and apparently successful counteroffensive went a long way in proving Ukraine can win the war. And that bodes well for the best natural gas stocks to buy, since protracted conflicts impose energy ambiguities.
gas stocks to buy now
Another name among the best natural gas stocks to buy that stands poised to benefit from current circumstances is EQT Corporation (NYSE:EQT). With Russia effectively cutting off relations with a major regional partner, demand for the underlying commodity should theoretically skyrocket. One thing is for sure: EQT enjoyed a bonanza this year. Since the January opener, the stock ripped out a return of nearly 122%.
With geopolitical factors escalating, Coterra must surely be thinking even harder about LNG exports. Moreover, with Ukrainians shocking the Russians with their robust counteroffensive, the Kremlin may get more desperate. Such a backdrop could create even harsher responses by Moscow, which may cynically boost CTRA as one of the best natural gas stocks to buy.
Cynically, the chaos bodes well for the best natural gas stocks to buy. However, Devon Energy is no vulture. Unlike other questionable companies in the space, Devon features retained earnings of $3.1 billion on a trailing-12-month basis.
Oil and gas stocks are a type of equity securities that give investors a stake in companies involved in the exploration, production, refinement, or distribution of oil and gas. Oil and gas stocks can offer investors exposure to a variety of energy-related businesses, from major international oil companies (IOCs) to small exploration and production firms.
While oil and gas stocks may be impacted by a number of factors, including geopolitical risk and commodity prices, they can provide investors with the potential for long-term capital growth. Oil and gas stocks may be suitable for investors with a high tolerance for risk who are looking for exposure to the energy sector. Keeping this on top of mind, here are four trending oil and gas stocks to watch in the stock market today.
Read on as we look at eight of the best energy stocks to buy now. To compile the list, we turned to the TipRanks database (opens in new tab). Each of the names featured here boasts either a Strong Buy or Moderate Buy rating from Wall Street analysts, and each offers major upside potential based on their consensus price targets.
The Street is also bullish on one of the best energy stocks for 2023, with a unanimous 18 Buys among analysts that have sounded off over the past three months. TipRanks offers up a full analyst rundown of SLB shares (opens in new tab).
EOG is another of the Strong Buy-rated energy stocks featured here, thanks to 18 Buys and just two Holds among analysts who have released notes over the past three months. Check out other analysts' price targets and analysis for EOG at TipRanks. (opens in new tab)
LNG is another one of Wall Street's favorite energy stocks, as evidenced by the consensus Strong Buy rating and $211 price target. This average price target indicates that even after a rally of more than 66% in the past year, Wall Street pros see additional upside of roughly 25% for the shares. See the full rundown of analyst ratings for LNG on TipRanks (opens in new tab).
Shrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks since January 2021. You can contact Shrilekha on LinkedIn."}; var triggerHydrate = function() window.sliceComponents.authorBio.hydrate(data, componentContainer); var triggerScriptLoadThenHydrate = function() if (window.sliceComponents.authorBio === undefined) var script = document.createElement('script'); script.src = ' -9-5/authorBio.js'; script.async = true; script.id = 'vanilla-slice-authorBio-component-script'; script.onload = () => window.sliceComponents.authorBio = authorBio; triggerHydrate(); ; document.head.append(script); else triggerHydrate(); if (window.lazyObserveElement) window.lazyObserveElement(componentContainer, triggerScriptLoadThenHydrate, 1500); else console.log('Could not lazy load slice JS for authorBio') } }).catch(err => console.log('Hydration Script has failed for authorBio Slice', err)); }).catch(err => console.log('Externals script failed to load', err));Shrilekha PetheSocial Links NavigationContributing Writer, Kiplinger.comShrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks (opens in new tab) since January 2021. You can contact Shrilekha on LinkedIn (opens in new tab).
In other words, short-term volatility is likely to plague even the best natural gas stocks. However, the longer-term outlook for the sector is more bullish than recent headlines and trading action suggest.
Nevertheless, Black Stone represents one of the best natural gas stocks to buy because of its robust balance sheet and strong profitability metrics. Specifically, its net margin of nearly 70% ranks above almost 95% of the industry.
As with the other stocks on this list, WDS has lost momentum recently. Shares are down more than 10% since hitting a 52-week high in November. However, this softness could offer an attractive entry point.
Growth stocks are those that tend to make money for investors because they appreciate in price over time, compared to value stocks that generate income. When looking at growth stocks, you want to choose those that will grow faster than the overall economy. Here are some natural gas growth stocks to consider.
Energy sector stocks come from companies focused on the production and supply of energy products to the rest of the economy. They can also include companies providing services and equipment to energy producers. Some of the top categories for energy stocks include:
Possible rebound after a recession. The energy sector struggled throughout the Covid-19 pandemic, due to less travel and overall demand. Now that the world is beginning to reopen, there could be a new surge in travel, pushing up demand and prices for the best energy stocks.
A volatile market. Energy prices can swing widely and rapidly, depending on the state of the global economy. For example, over the past 10 years the price of crude oil has gone from as high as nearly $110 a barrel to as low as less than $20 a barrel at the start of the Covid-19 pandemic. The value of energy stocks tends to track energy prices, making these investments more volatile and potentially riskier than stocks in other sectors.
Recently energy stocks have the highest dividend yield of any stock market sector, as well as the highest free-cash flow. These two statistics are connected: Companies that generate a lot of cash flow can spend a lot on dividends.
Some energy stocks are a good bet during a recession, but not all energy companies do well in a downturn. Utility stocks that distribute electricity and natural gas have steady revenues and cash flow, making them great stocks to own during a recession.
Back in March and April 2020, when the entire world was engulfed in an end-of-the-world sentiment due to the Covid-19 pandemic, when WTI benchmark for a time reached -$30 thanks to an oil price war, it only took the common sense that motorists would prefer ICE-powered wheels than horse-drawn buggies to move around, if just for a few more years, to compel me to back up the truck with energy stocks that were being given away.
U.S. natural gas stocks tumbled on Tuesday, as gas prices fell alongside oil, tested their lowest levels since March. U.S. inventories rose. And fear of recession increased as the International Energy Agency (IEA) projected weaker-than-expected demand for the remainder of the year.
Europe has scrambled to find alternatives to Russian gas, following Russia's assault on Ukraine. As a result, demand for LNG has soared. LNG stocks also soared early this year, but have largely traded flat since April.
On Tuesday, LNG stocks ended mixed while natural gas prices closed sharply lower. LNG exporter Cheniere Energy (LNG) shed early losses to end Tuesday with a fractional gain. On Wednesday, LNG was down 3% during market trading.
We screened our 24/7 Wall St. energy research database looking for companies that are leaders in natural gas production and have stocks that have been sold off as the commodity traded lower. Five top stocks hit our screens, and all are rated Buy across Wall Street and come with solid and dependable dividends. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
US-based firms are likely to have to step up their production to make up the supply gap, according to Bank of America. That will create opportunities for investors eyeing up oil and gas stocks - with the energy sector already performing strongly this year. 041b061a72