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Weekly Strategy Calls
Looking for High Performance in Oil and Fuel Stocks
Posted: 11/06/2024
This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:
• More top stocks in the Oils & Energy sector. After his previous discussion focused on companies that produce energy used for electrical power generation, this week’s discussion looks at fuels used primarily for transportation, specifically road, marine and aviation. The three industries he covers in this week’s discussion are Oil-Miscellaneous, Oil-Integrated, and Oil & Gas Production-Pipeline.
• To begin, John looks at the latest trends and developments in these industries, including biofuel consumption, both in transportation but now also biogas usage for heating (especially in Europe as a result of Russian pipeline issues). Then he reviews top stocks using his three definitions: market capitalization; number of analysts following the stock; and largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).
• With this framework, he examines the essential metrics for the stocks in these industries, such as Return on Equity, Total Debt, Reinvestment Rates, EPS F12M, Net Margin TTM %, and more. His survey includes some of the world’s leading energy companies such as TotalEnergies SE (TTE), Exxon Mobil (XOM), Shell (SHEL) and BP (BP), as well as other essential players in this sector including Kinder Morgan (KMI), ONEOK (OKE), Williams Companies (WMB), and many others. Don’t miss this important review of the companies that power our world from Zacks’ Chief Equity Strategist!
The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.