As far as volatility is concerned, energy stocks are on top of the list. After all, all types of businesses including retailers, tech companies, and automakers decide on the price tag of their goods or services. But this is not the case with energy stocks as the value of these stocks depends upon the market conditions. These commodities include natural gas and crude oil, and their prices are fixed.
Due to the covid-19 pandemic, the prices of energy stocks dropped considerably in 2021. However, this worked for the benefit of investors in 2021 as the world economy is back on its feet once again. The demand for fossil fuels is on the rise, which is good news for oil and gas companies.
If you want to invest in one of the best energy stocks and 2021, you are on the right page. Although the value of these stocks is not guaranteed to go up, you can increase your chances of earning a profit by opting for the most popular ones. Without further ado, let’s know more about the best energy stocks you can invest in.
The market value of Cheniere Energy is around $21.6 billion. Since it form has a powerful energy infrastructure, it processes and supplies liquefied natural gas (LNG) to several countries across the globe.
As far as performance and analyst ratings are concerned, the value of LNG has gone up by 74% over the past 12 months. On the other hand, the S&P 500 Index has gone up by 36%, while CQP has gone up by around 9.5% based on the measurement by the share price.
This strong performance is partly because the firm signed long-term distribution contracts. Unlike other energy products such as gasoline, coal, or jet fuel, the demand for natural gas remained stable.
Therefore, the operating loss was quite modest in 2020 when many other energy stocks suffered huge losses. This year, on the other hand, things are getting better as the economy is back on its feet. According to experts, the revenue of the company will increase to 32% in 2021, and it will go off by 10% in 2022.
ConocoPhillips has a market capitalization of $81.6 billion, and the firm offers a dividend yield of 2.9%. Energy stocks have not been doing great in the last few years. ConocoPhillips is in the same boat. The value of this stock is a little lower than what it was in 2018.
Although this stock has not done well over the past two years, there is still hope for the investors. According to COP forecasts, the year 2021 will be good for investors as the firm will earn twice as much revenue as 2020. The credit goes to the higher operational efficiencies. The oil giant forecasts good earnings per share (EPS) next year.
For income investors, the annual dividend of $1.72 per share is quite impressive. Integrated oil is not an easy business when the prices of energy products are down, and there is a potential reduction in the consumption of fossil fuel for the long term. But if you want to give another chance to Conoco, now is the best time to do so.
The value of the share has recovered by 50% since January 2021, and the sentiment is encouraging for the rest of the.
The market value of Consol Energy is $598.2 million. Based in Pennsylvania, this energy stock is not the most forward-looking amidst climate change. After all, the firm deals in thermal coal and some other export services in this sector.
Although most developed countries of the world are moving away from conventional energy sources, Consol can still do big business in developing countries of the world. After all, the firm has coal reserves of over two billion tons.
If you have some experience in buying and selling stocks, you know that the value of even the most profitable companies declines at times. Similarly, some not-so-popular companies may do very well in the short term when circumstances are favorable.
One such firm is Consol Energy. According to experts, the company may earn 18% higher revenue by the end of this year.
Devon Energy has a market value of $19.4 billion. This independent Energy Company is involved in the exploration, production, and development of oil and natural gas fields. Established in 1971, this firm has around 4000 Wells in the United States.
Without any doubt, the company suffered losses due to the crash of energy prices last year. Although other companies in the sector were deep in the red, Devon Energy suffered a loss of only 9 cents per share in FY2020.
In 2021, the company is in full swing. According to the forecast, the value of one Devo share will earn $2.31. By the end of this year, the revenue may increase more than 80%. If this momentum continues, the revenue per share will be $3.10 in FT2022, which is 30% growth.
In 2019, Devon has got back to the highest levels once again. Recently, the company declared a 34 cents per share of a quarterly dividend of fixed plus variable, which is a combination of a fixed dividend payment in addition to a variable dividend payment based on the market conditions. Compared to the previous quarter, this is a 13% increase.
Although another drop in energy may be around the corner, looks like Wall Street is not worried about these risks, and considers Devon as a profitable energy stock. According to analysts, Devon Energy is a Strong Buy.
Golar LNG’s market value is $1.4 billion and it provides the natural gas industry with the infrastructure. Like other big “midstream” stocks, this firm turns gas into liquid, stores, transports, and then regasify at the end of the stage.
Although there are many energy stocks out there, what makes Golar different is this firm does this on the water primarily. These days, Golar is the operator of 10 LNG carriers. Apart from this, the firm has three floating terminals for liquefying, storing, and gasifying fossil fuels.
There is a lot of demand for natural gas. For example, it is used in power plants for a variety of industrial applications. Apart from this, it is also associated with cyclical economic activity. This is the reason many players in this field suffered losses during the pandemic.
By contrast, Golar LNG has been in a better position. The firm canceled dividend payments before the pandemic caused a significant disturbance. Apart from this, the current trading value of this stick is around 30% of the price it had during its peak season in 2018.
However, according to Wall Street analysts, the turnaround prospects are quite encouraging.
Green Plains has a market capitalization of $1.6 billion. If you consider it on the list of some straightforward energy stocks, this firm is unique because it ranks among the major producers of ethanol in the United States.
Also, GPRE is the provider of liquids and materials for several whisky makers and distillers. However, it is important to note that ethanol makes up only 80% of the revenue of the farm.
Corn is the source of ethanol. Therefore, it is considered a sustainable source of fuel for the transportation sector. Today, traditional gasoline has around 10% ethanol in it. Therefore it has great potential because the economy is on the track of recovery, and more and more people are using their vehicles to travel this summer.
However, the annual comparable company analysis (Comp) is not pleasant. According to the earnings report of the company for the first quarter of 2021, Green Plains sold ethanol of 178m gallons, which is a huge figure. But when we compare it to the figures for the first quarter of 2020, it is lower by 25%.
However, according to Wall Street, the company may go back to profitability in the next few months, and it will generate significant revenues in 2022.
National Energy Services Reunited
This company has a market value of $1.4 billion. The partnership between NESR and international oil drillers has allowed this company to access international markets and gain regional expertise.
NESR has over 5000 employees that belong to over 60 nationalities across 16 countries. The services of the company include hydraulic testing, evaluation, drilling, pumping, and filtration, just to name a few.
What makes NESR interesting for investors read the company focuses on the north Africa and Middle East segment. These two are the major sources of oil production. And developed nations may not get away from fossil fuels in response to global climate concerns.
It is amazing to note that NESR is on the list of those few energy service talks that generated profit last year. According to experts, the earnings per share of NESR may go up by about 45% in 2021 with an 18% growth of revenue. Besides, EPS may go up by 60% during the next fiscal year with expected revenue growth of 21%.
PDC Energy has a market value of $4.6 billion. PDC is an independent exploration and production company. Around 10 years back, it was called the Petroleum Development Corporation. The history of the company goes back to 1969. Since then, the company has grown quite a bit.
Although most energy stocks struggled last year, PDC tightened its belts and was dependent on reserves in order to face the economic crash. As a result, PDC capitalized on the elevated prices of energy these days.
Over the last 12 months, charts show that the stock has tripled. This fiscal year, the revenue is expected to go up by 30%, and another 30% next year. Although some pears are still struggling, the company declared a dividend on the 24th of June.
Talos Energy has a market capitalization of $1.5 billion. Unlike large companies, Talo does not have deep pockets. Therefore, during the crisis of 2020, the share price of Talos dropped to $6 per share, which is a drop in value of over 80% compared to the value of one share in 2018.
However, the company used a lot of accounting tricks and belt-tightening techniques to muddle through. With the recovery of oil prices, it came back into the business. Today, the company has over 160m oil barrel equivalents and around 260m cubic feet of natural gas.
The value of Talo shares is around $10 per share. During this fiscal year, the company is projected to work at a loss in spite of the fact that there was a forecast of a 70% increase in revenue.
According to Wall Street analysts, things will be better, and that Talo will recover and make progress during the next year. Since January, the number of shares has doubled, and there is still a lot of room for expansion.
Whiting Petroleum has a market value of $2.1 billion. This independent oil and gas giant operates out of Colorado. Primarily, the company focuses on the production and development of energy fields in the Rocky Mountains. At the end of the last fiscal year, the company had an interest in more than 2000 productive wells with a projected reserve of 260m barrels of oil.
Like other energy stocks, the value of 70 dollars per barrel of oil has been great news for the company. The good thing is that these tailwinds are expected to persist. However, experts predict that there will be inflationary pressure in the future.
In the fiscal year 2021, the company posted a per-share loss of $3.83. At the end of this year, the forecast tells us that the company will make a profit of $8.40 against one share. This will be an amazing turnaround.
Since the market value of the company is $2 billion, Whiting is still a huge company and may not go out of business during these tough times. Therefore, if you are going to invest in this company, you don’t need to worry about this aspect.
Due to the industry-wide tailwinds and substantive operations, the stock of the company has doubled in 2021.