Breaking News
Investing Pro 0
Cyber Monday Deal: Up to 55% off CLAIM SALE

3 High-Energy Stocks to Fuel Your Portfolio in H2 2023

By Investing.com (Ismael De La Cruz)Stock MarketsAug 31, 2023 10:58
ng.investing.com/analysis/3-highenergy-stocks-to-fuel-your-portfolio-in-h2-2023-180809
3 High-Energy Stocks to Fuel Your Portfolio in H2 2023
By Investing.com (Ismael De La Cruz)   |  Aug 31, 2023 10:58
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
APA
-1.46%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SLB
-0.10%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PSX
-0.26%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XLE
-0.36%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
VDE
-0.47%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • Energy stocks have had a great start to the second half of the year
  • But will the initial momentum result in a strong finish to 2023?
  • Let's delve into three stocks showing early signs of a sustained H2 rally

After a period market by subsiding oil and natural gas prices, energy stocks appear to be back in the vogue at the start of the latter half of the year.

This trend is evident in the Energy Sector Fund (NYSE:XLE), which has surged 10% since the end of June. This performance positions it as the leading sector within the S&P 500 during this period.

XLE Daily Chart
XLE Daily Chart
Interestingly, many might not be aware that the energy sector doesn't carry much weight within the S&P 500, accounting for less than 5%.

There are two ways to invest in the energy sector. You could buy individual shares of companies within the sector. Or, you can invest in ETFs.

In terms of ETFs, there are two noteworthy options:

  1. The prominent one is the Energy Select Sector SPDR Fund (XLE) which manages $37.5 billion. Established on December 16, 1998, it debuted with a trading price of $23.31. The fund's expense ratio is 0.10%. It comprises 28 companies, with the largest holdings being Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), Phillips 66 (NYSE:PSX), ConocoPhillips (NYSE:COP), EOG Resources (NYSE:EOG), Valero Energy (NYSE:VLO), Williams Companies (NYSE:WMB), Schlumberger (NYSE:SLB), Kinder Morgan (NYSE:KMI) and Marathon Petroleum (NYSE:MPC).
  2. Vanguard Energy Index Fund ETF Shares (NYSE:VDE), overseeing $8.4 billion with a 0.10% expense ratio, holds several key energy companies. These include ExxonMobil, Chevron, ConocoPhillips, Schlumberger, EOG Resources, Marathon Petroleum, Occidental Petroleum (NYSE:OXY), Pioneer Natural Resources (NYSE:PXD), Valero Energy and Phillips 66.

On the other hand, you can buy stocks showing early signs of strength, with the potential to have a very strong H2 2023.

1. APA

Based in Houston, Texas, APA Corporation (NASDAQ:APA) is involved in the exploration and production of oil and gas across regions like the United States, Europe, Africa, and Latin America. It became the parent company of Apache Corporation in 2021.

The current dividend yield stands at +2.30%, with dividends of $0.25 per share distributed this year.

Notably, the results announced on August 2 showed strong performance, with revenues up by +11.9% and earnings per share (EPS) increasing by +18.9%. Investors can look forward to the next set of results on November 1.

APA Weekly Chart
APA Weekly Chart
The stock has received 28 ratings from analysts, out of which 16 have recommended buying, 8 have recommended holding, and 4 have recommended selling.

As per the market analysis, the stock has the potential to reach $49.79, while InvestingPro's models estimate its value to be at $49.34.

The stock has shown a positive trend, with a 9% rally in the last month and +35% in the last three months. It has held on to its support level and bounced back strongly, remaining above its 50 and 200-day averages.

2. Schlumberger

Originally established in 1926 as Société de prospection électrique, Schlumberger is now the world's largest oilfield services company.

Operating in over 85 countries, its main offices are situated in Houston, Paris, London, and The Hague. Its shares are traded on various exchanges, including the New York Stock Exchange, Euronext in Paris, the London Stock Exchange, and the SIX Swiss Exchange.

The upcoming dividend payment is set at $0.25 per share on October 12, and to be eligible for this dividend, shares must be held before September 5. The annual dividend yield is at +1.72%.

In terms of recent performance, the results revealed on July 21 exceeded expectations, with earnings per share performing 1% better than anticipated.

Looking ahead, the next results are scheduled for October 20, where an improvement of +6.06% is expected in earnings per share, reaching $0.78, along with a better profit increase of +4.12%.

Schlumberger Daily Chart
Schlumberger Daily Chart
Schlumberger has received a total of 27 ratings from analysts, with a breakdown of 24 buy ratings, 3 hold ratings, and 0 sell ratings. UBS has assessed its potential to reach $73, while the broader market consensus suggests a potential value of $66.

Over the past 3 months, the company's shares have seen a significant increase, rising by +32.11%. Looking at a longer timeframe, the shares have shown strong growth over the past 12 months, recording a gain of +53.28%.

However, it's important to note that Schlumberger encountered resistance at the beginning of August. Despite its positive performance, the stock has been unable to surpass this resistance level, which could be influencing its recent movement.

3. Phillips 66

Phillips 66 is headquartered in Houston, Texas. Originally formed as a subsidiary of ConocoPhillips to manage its downstream and midstream assets, it became an independent entity and started trading on the New York Stock Exchange on May 1, 2012.

With an annual dividend yield of +3.73%, Phillips 66 offers attractive returns to its shareholders. The most recent dividend distribution amounted to $1.05 per share.

In its latest financial report released on August 2, the company displayed strong performance, surpassing expectations with an impressive +8.6% increase in earnings per share.

Investors can look forward to the upcoming financial results on October 27, which are anticipated to show remarkable growth of +39.70% in earnings per share and +6.50% on the earnings front.

Phillips 66 Weekly Chart
Phillips 66 Weekly Chart
InvestingPro's models indicate a potential value of $150.62. Its shares have risen +21.53% over the past 3 months and +30% over the past 12 months, and it is currently moving within the range of an ascending channel.

***

Disclaimer: The author does not own any of these shares. This content, which is prepared for purely educational purposes, cannot be considered as investment advice.

3 High-Energy Stocks to Fuel Your Portfolio in H2 2023
 

Related Articles

3 High-Energy Stocks to Fuel Your Portfolio in H2 2023

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email