A robust economy can support rising oil prices and oil producer profitability. However, geopolitics and capital allocation also play crucial roles in the industry. Enbridge operates one of the biggest oil pipeline systems in the world. Enbridge also has an extensive natural gas pipeline system, a natural gas utility business, and renewable energy operations. It started paying dividends in 1829, and no investor could outlive its 195-year dividend track record.
- In the bond market, the yield on the 10-year Treasury eased to 4.05% from 4.14% late Tuesday.
- Assuming oil demand increases over time, the companies that do a good job producing oil should benefit.
- At the end of 2020, it reported net proved reserves of 3.2 billion barrels of oil equivalent.
- This makes TotalEnergies something of a punt option in the oil space for investors who recognize that clean energy is going to be increasingly important.
- One of the largest oil companies on the planet, ExxonMobil is a fully integrated supermajor.
Best-performing oil stocks
Their average target price of $192.81 gives shares implied upside of about 30% over the next 12 months or so. To find analysts’ favorite oil stocks to buy now, we screened the Russell 3000 for oil stocks with the highest analyst recommendations, per data from S&P Global Market Intelligence. In addition, it made a variable dividend payment of $0.22 per share, pushing the quarterly total to $0.44 per share. At that payment rate, Devon Energy has an implied annualized forward dividend yield of 4% at its recent share price of $44. Oil and gas stocks as a group, measured by the benchmark Energy Select Sector SPDR ETF (XLE), have climbed by 10% in the past year, outperforming the broader market.
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As for valuation, FANG changes hands at 7.9 times analysts’ 2022 earnings estimate. They expect the company to deliver average annual EPS growth of 3% over the next three to five years, per S&P Global Market Intelligence. The moves were met with approval by analysts who cover oil stocks. Analysts’ consensus recommendations and other data are courtesy of S&P Global Market Intelligence. Stocks are listed by strength of analysts’ consensus recommendation, from lowest to highest.
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Before investing in any oil stocks, you need to find the right brokerage account for your investments, even if you have your finger on the pulse of crude oil prices. Most major online discount brokers have access to the oil company shares you’re looking for (along with other firms in the energy sector), but beware of fees and commissions. Almost all brokers are commission-free for stocks and ETFs now, and most require no minimums to open an account.
Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Best oil stock Park cheering on the Phillies. Refiners can wind up charging less for their products than they cost to make. We believe everyone should be able to make financial decisions with confidence. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.
“COP is one of these companies, as it benefits from its size, scale and combination of major long-cycle and unconventional short-cycle projects.” The Street expects the company to generate average annual earnings per share (EPS) growth of 7.8% over the next three to five years. Given that outlook, PSX’s valuation – trading at 11.7 times estimated earnings for 2022 – appears eminently reasonable. PSX is widely considered among the pros to be one of the best oil stocks to buy now. Of the 19 analysts covering Phillips 66 tracked by S&P Global Market Intelligence, eight rate it at Strong Buy, seven say Buy and three have it at Hold. “We still view PSX as a long-term core holding in energy. PSX’s business should justify a premium valuation relative to the group.”
Here’s why they chose TotalEnergies (TTE 0.88%), ConocoPhillips (COP 1.25%), and Devon Energy (DVN 4.49%). How do investors price dividend uncertainty, known https://investmentsanalysis.info/ as the dividend risk premium, into equities and ETFs? The options market can often provide valuable information on sentiment for, and potential movement…
Devon produced $1.5 billion of operating cash flow in the quarter, a 9% increase from the year-ago period. The oil company also benefited from higher pricing (it realized $44.29 per BOE, compared to $42 per BOE in the second quarter of last year) and its continued efforts to contain costs. Devon Energy delivered record oil production in the second quarter.
Today, this $58.9 billion company is the country’s third-largest lender by market cap. The oil industry is coming off one of its best years in quite some time. Oil prices rebounded sharply as the global economy recovered from the pandemic and producers maintained a tight lid on supply. These strong market conditions should continue in 2022 and beyond because the world needs oil despite its shift toward cleaner energy sources. Pioneer Natural Resources (PXD, $148.58) is another one of analysts’ favorite oil stocks in the independent E&P sector.
