Two Sweet 16 in Zacks Top Energy Sector Picks

[dan_s]

Zacks Top Picks on June 25, 2018

Strong international demand for crude oil, tight global oil inventories and stabilization of oil production level will boost oil price rally in the near term. Consequently it will be a prudent move to invest in good energy stocks. However, picking winning stocks can be a difficult task.

This is where our VGM Score comes in Handy. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select the winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy):

Continental Resources Inc. CLR is a crude-oil concentrated, independent oil and natural gas exploration and production company with operations in the Rocky Mountain, Mid-Continent and Gulf Coast regions of the United States. It has expected earnings growth of 527.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 6.3% over the last 30 days.

Parsley Energy Inc. PE is an independent oil and natural gas company. It is focused on the acquisition, development, and exploitation of unconventional oil and natural gas reserves in the Permian Basin. It has expected earnings growth of 146.4% for the current year. The Zacks Consensus Estimate for the current year has improved by 6.9% over the last 30 days.

Whiting Petroleum Corp. WLL is an independent oil and gas company that acquires, develops and explores for crude oil, natural gas and natural gas liquids primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast and Michigan regions of the United States. It has expected earnings growth of 317.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.4% over the last 30 days.

WildHorse Resource Development Corp. WRD is an oil and natural gas company. The company’s properties primarily consist of Eagle Ford Shale in East Texas and the Over-Pressured Cotton Valley in North Louisiana. It has expected earnings growth of 334.9% for the current year. The Zacks Consensus Estimate for the current year has improved by 6.3% over the last 30 days.

Anadarko Petroleum Corp. APC is one of the world's largest independent oil and gas exploration and production companies. Majority of the company's total proved reserves are located in the United States. It has expected earnings growth of 251% for the current year. The Zacks Consensus Estimate for the current year has improved by 7.2% over the last 30 days.

[dan_s]

More bullish comments from the Wall Street Gang this morning. As I have posted here many time, "the herd can change direction quickly."

"The energy sector appears to have shaken off its dismal start to the year, rebounding nicely as oil prices continue their rise that began in the latter half of 2017. Yet shares of energy exploration and production companies in the U.S. Permian Basin region are being left behind as investor concerns over supply bottlenecks have directed their attention and cash elsewhere. The fears are overdone, however, as some analysts see an opportunity for a rebound in names like Cimarex Energy Co. (XEC), Matador Resources Co. (MTDR), Parsley Energy Inc. (PE), Diamondback Energy Inc. (FANG), Concho Resources Inc. (CXO) and Callon Petroleum Co. (CPE), according to Barron’s."


Read more: 6 Lagging Oil Stocks Ready to Rebound | Investopedia https://www.investopedia.com/news/6-lag ... z5JRaT4vdW

[dan_s]

“We think producers may slow down growth in the Permian and build up drilled but uncompleted (DUC) wells and/or reallocate resources elsewhere until the constraints are worked out. We believe top beneficiaries are Eagle Ford and Bakken as the flows can bypass Cushing to access the Gulf Coast.” – Barclays

LONE, SN, CRZO, MTDR and EOG have lots of upside in the Eagle Ford