Related XLF Sector Rotation Strategies Boost Popularity Of Sector ETFs Energy Struggles Straining Financial Services ETFs For Stocks Friday, Syria Developments Help But Retail Sales Is Pivotal (Seeking Alpha)
Down almost 12 percent year-to-date, the Financial Select Sector SPDR (NYSE: XLF) is the worst performer among the nine established sector SPDR exchange traded funds this year. XLF is far from the only financial services offender as ETFs tracking the S&P 500's second-largest sector are being plagued by the flattening yield curve and lower oil prices, among other factors.
Hot Energy Stocks To Buy For 2018: ENI S.p.A.(E)
Advisors’ Opinion:
- [By Dustin Parrett]
Big Oil stocks are the seven “oil supermajors” that do everything from oil drilling to refining to retail sales. This is a list of the Big Oil companies:
Big Oil CompanyShare PriceYTDMarket CapExxon Mobil Corp. (NYSE: XOM)$83.44-7.58%$353.13BChevron Co. (NYSE: CVX)$113.56-3.5%$217.62BConocoPhillips Co. (NYSE: COP)$48.21-3.78%$61.42BRoyal Dutch Shell Plc. (NYSE ADR: RDS.A)$52.35-3.82%$221.08BBP Plc. (NYSE ADR: BP)$34.12-8.71%$112.69BTotal SA (NYSE: TOT)$50.26-1.35%$124.6BEni SpA (NYSE: E)$31.51-2.3%$58.69B
Despite being huge global oil companies, shares of Big Oil stocks are all in the red this year. Those losses have all happened even as the Dow is smashing record highs and trading up 6.4% year to date.
- [By Paul Ausick]
Reuters reported last week that the company is considering selling its 2,500 service stations in Italy for a tidy 500 million (about $538 million). The rumored buyer is private equity giant Apollo Global Management LLC (NYSE: APO), also rumored to be interested in buying 2,600 Italian service stations from a joint venture between Italy’s Eni SpA (NYSE: E) and Total SA (NYSE: TOT).
- [By Dustin Parrett]
Specifically, the oil supermajors are ExxonMobil Corp. (NYSE: XOM), BP Plc. (NYSE: BP), Chevron Corp. (NYSE: CVX), Royal Dutch Shell Plc. (NYSE ADR: RDS.A), Conoco Phillips (NYSE: COP), Eni SpA (NYSE ADR: E), and Total SA (NYSE ADR: TOT).
Hot Energy Stocks To Buy For 2018: Enbridge Inc(ENB)
Advisors’ Opinion:
- [By Jim Robertson]
On Friday, our Under the Radar Moversnewsletter suggested shorting small cap energy transportation and distribution stock Enbridge Inc (NYSE: ENB):
- [By Matthew DiLallo]
Not to be outdone, rival Canadian oil pipeline giant Enbridge (NYSE:ENB) announced a transformational gas-focused deal of its own, agreeing to acquire U.S. pipeline company Spectra Energy (NYSE:SE) for $28 billion. That transaction will catapult Enbridge past TransCanada and create the largest energy infrastructure company in North America. Further, the deal will bolster Enbridge’s near-term capital project backlog to $20 billion, while enhancing its inventory of longer-term investment opportunities to $37 billion. This pipeline supports Enbridge’s view that it can increase its dividend by 10% to 12% annually through 2024.
Hot Energy Stocks To Buy For 2018: Panhandle Royalty Company(PHX)
Advisors’ Opinion:
- [By Lisa Levin]
Energy sector was the top gainer in the US market on Friday. Top gainers in the sector included Superior Energy Services, Inc. (NYSE: SPN), Panhandle Oil and Gas Inc. (NYSE: PHX), and SM Energy Co (NYSE: SM).
- [By Lee Jackson]
These companies also reported insider buying last week: Cidara Therapeutics Inc. (NASDAQ: CDTX), Ducommun Inc. (NYSE: DCO), HealthEquity Inc. (NASDAQ: HQY), Panhandle Oil and Gas Inc. (NYSE: PHX) and PolarityTE Inc. (NASDAQ: COOL).
Hot Energy Stocks To Buy For 2018: Nabors Industries Ltd.(NBR)
Advisors’ Opinion:
- [By Jon C. Ogg]
Nabors Industries Ltd. (NYSE: NBR) rose by 22.3% to $16.11 on Wednesday. Its volume of 17.4 million shares was about 2.5 times normal trading volume. Nabors has a consensus analyst price target of $15.04 and a 52-week trading range of $4.93 to $16.50. The company has a total market cap of $4.6 billion.
- [By Wayne Duggan]
While Loop maintains a Buy rating on all of the stocks mentioned above, Guggenheim analyst Michael LaMotte isn’t quite so bullish on the sector. Earlier this week, LaMotte downgraded the following oil services stocks from Buy to Neutral:
Baker Hughes Incorporated (NYSE: BHI)
Fairmount Santrol Holdings Inc (NYSE: FMSA)
Helmerich & Payne, Inc. (NYSE: HP)
Nabors Industries Ltd. (NYSE: NBR)
Schlumberger Limited. (NYSE: SLB)
Halliburton
Superior Energy ServicesGuggenheim also cut its 2017 oil price forecast from $55 to $48/bbl.
- [By Craig Jones]
On CNBC's "Fast Money Halftime Report", Jon Najarian spoke about Nabors Industries Ltd. (NYSE: NBR). He said that somebody bought 6,500 contracts of the July 11 calls for $0.50 in the first half of the session. The trade breaks even at $11.50 or 16.28 percent above the current market price. Jon Najarian has a long position in the name and he is planning to hold it for a month.
Hot Energy Stocks To Buy For 2018: Weatherford International plc(WFT)
Advisors’ Opinion:
- [By Craig Jones]
Jon Najarian spoke on CNBC's "Fast Money Halftime Report" about unusual options activity in Weatherford International Plc (NYSE: WFT). The stock was trading more than 2.5 percent higher and options traders were buying the October 4.50 calls. Over 13,000 contracts were traded and the first block was huge. Najarian explained that an institutional trader was behind the first block and he decided to follow the trade. He is planning to hold the long position for two weeks.
- [By Paul Ausick]
Weatherford International plc (NYSE: WFT) dropped about 5.6% Friday to post a new 52-week low of $3.39 after closing at $3.59 on Thursday. Volume was about 23.4 million, around 5% less than the daily average of nearly 24 million shares. Another oilfield services company getting gored by falling oil prices.
- [By Ben Levisohn]
Weatherford International (WFT) has climbed 7.8% to $6.35 after announcing a joint venture with Schlumberger (SLB). Schlumberger has declined 0.4% to $76.67.
- [By Ben Levisohn]
When Weatherford International (WFT) announced that it had named Halliburton (HAL) CFO Mark McCollumits new CEO, its shares jumped as some observers contended itincreased the odds of an acquisition by the oil-services giant. It looks like they picked the wrong oil-services giant, however, as Weatherford and Schlumberger (SLB) announced a joint venture late Friday, one that has sent Weatherford’s shares soaring and earned it an upgrade from Wells Fargo analystsJudson Bailey andColeman Sullivan. They explain why:
AP
We are upgrading WFT to Outperform from Market Perform as we like the hire of Mark McCollum as CEO and now the formation of the OneStim JV, which gives us greater confidence in improving operations and the de-levering of the balance sheet long-term. We view the JV announcement between WFT and SLB late Friday as a positive outcome for WFT as it provides an immediate cash infusion of $535 MM and a 30% stake in what will likely be a stronger #2 competitor to HAL in NAM pressure pumping/completion services. We value the OneStim JV today at approximately $4 Bn ($1.2 Bn to WFT) with the potential for value uplift to $6-7 Bn assuming SLB improves utilization for WFTs pressure pumping assets.
Shares of Weatherford International have risen 9% to $5.89, while Schlumberger has fallen more than 1% to $77 and Halliburton has fallen 1.3% to $49. TheVanEck Vectors Oil Services ETF (OIH) has declined 0.64%.
- [By Ben Levisohn]
Last night, Weatherford International (WFT) reported a smaller than expected loss and announcing an alliance with Nabors Industries (NBR)–and the news was celebrated by the market.
Getty Images
No wonder: Weatherford reported a loss of 32 cents a share, less than the 34 cent loss analysts had predicted, on sales of $1.41 billion. Weatherford also said that it would team up with Nabors Industries to offer “integrated drilling solutions,” something we can only imagine is a response to consolidation in the oil-services space.
Still, not everyone is thrilled with Weatherford’s numbers. Stephens analyst Matthew Marietta, for instance, claims that his “Underweight thesis [is] intact” despite teh better than expected earnings:
Weatherfordreported $1.41 bil. of 4Q revenue, in line with cons./us. However EBITDA/margin of $67 mil./4.8% were below cons. at $88 mil./6.2% and our $105 mil./7.4% estimates. Despite shutting down its less profitable pressure pumping business for ~1/2 of 4Q, EBITDA/margin underperformance was due to weaker than expected revs/margins in Int’l (excl. MENA/Asia) and Land Drilling, and 8% q/q NAM growth (large cap peers up 9%-15%). Op. EPS was slightly ahead of cons., but benefited from a $27 mil./11% q/q reduction inDepreciation & Amortization and adjustments for $245 mil. (or ~$0.27/sh) of net non-recurring items (>$1.6 bil. total in 2016). Though net debt improved ~$500 mil. q/q, it was largely achieved by diluting shareholders ~9% and ultimately increased total debt to $7.6 bil. We remain UW based on non-recurring charges hitting for 20th straight quarter, ongoing balance sheet concerns/shareholder dilution risk, North America underperformance, and near-term declines across various Int’l markets.
Shares of Weatherford International have jumped 12% to $5.81 at 12:12 p.m. today, while Nabors Industries has fallen 3% to $15.79.
