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Top 5 Energy Stocks To Own Right Now

China will buy an additional $60 billion to $90 billion worth of American goods over the next several years, with agricultural products poised to benefit in the near term followed by energy and ultimately non-high-tech manufactured products, according to Morgan Stanley.

The world’s largest trading nation will likely seek a “non-disruptive approach” to reducing its record trade surplus with the U.S. by gradually increasing the share of additional goods imported from there, Hong Kong-based economists Robin Xing and Jenny Zheng wrote in a report this week. Other economists say China will have to divert imports from other nations.

China’s imports increased by $255 billion, or 16 percent, to $1.84 trillion last year, customs administration data show. Incoming shipments from the U.S. rose by $20 billion, accounting for less than 8 percent of the total gain.

Boosting goods imports from the U.S. by more than $90 billion could require Washington to relax controls on high-tech exports to China, “an option in which the U.S. has appeared to show little interest in the current trade talks,” Xing and Zheng wrote.

Top 5 Energy Stocks To Own Right Now: National Oilwell Varco, Inc.(NOV)

Advisors’ Opinion:

  • [By Matthew DiLallo]

    After steadily improving for several quarters, National Oilwell Varco’s (NYSE:NOV) recovery hit a speedbump in the first quarter of 2018. Revenue declined 9% from the previous quarter and missed its forecast due to several issues. However, one thing the company’s management team made clear on the accompanying conference call was that while the quarter was a disappointment, they’re increasingly optimistic about what they see ahead.

  • [By Garrett Baldwin]

    The price of Bitcoin faced more pressure over the weekend. The downturn came on news that several major banks have banned the purchasing of Bitcoin with credit cards. Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and Citigroup Inc. (NYSE: C) have all banned cryptocurrency purchases since Friday. This means that the top five credit card issuers have now halted the practice. Bitcoin sat at $7,773 this morning.
    Janet Yellen is officially out of the Federal Reserve and will be heading to the Brookings Institution. Today, Jerome Powell will begin his first term at the helm of the U.S. central bank. Powell takes over at an interesting time for the U.S. economy. The central bank is expected to raise interest rates three times in 2017. In addition, Powell must manage a $4.5 trillion balance sheet that the Fed built up in the wake of last decade’s financial crisis.
    Gold prices saw a slight gain in pre-market hours. But those gains could surge as markets continue to face questions about inflation and a weaker U.S. dollar. Gold prices saw one of their biggest one-day declines in two months on Friday. Investors are looking at this as a solid entry point given price expectations from Money Morning Resource Specialist Peter Krauth. Peter expects that gold prices will reach $1,400 by the end of June and rise to as high as $1,500 by December.
    VideoMeet the Trading Expert Who Could Help Make You a Millionaire
    Crude oil prices slid in pre-market hours to a one-month low. TheWTI crude oil price todayfell 0.6%. Brent crude dropped 1.1%. Markets are growing increasingly fearful that rising U.S. production could spur an oversupply of the markets.
    Four Stocks to Watch Today: WFC, AVGO, QCOM, BMY
    Shares of Wells Fargo & Co. (NYSE: WFC) are off more than 8% this morning because the Fed has forced new sanctions on the bank that will limit its growth. The Fed’s consent order will see the bank change four members of its board of directors and

  • [By Zacks]

    On the news front, U.S. supermajor Chevron Corp. (NYSE: CVX) gave its go-ahead to the $5.1 billion second stage of its massive Gorgon LNG project in Western Australia, while oilfield service providers McDermott International, Inc. (NYSE: MDR) and National Oilwell Varco, Inc. (NYSE: NOV) provided first-quarter operational updates.

  • [By Logan Wallace]

    National Oilwell Varco (NYSE: NOV) and DistributionNOW (NYSE:DNOW) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Top 5 Energy Stocks To Own Right Now: Foresight Energy LP(FELP)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Foresight Energy (NYSE:FELP) – Analysts at B. Riley lifted their Q2 2018 earnings per share (EPS) estimates for Foresight Energy in a research report issued to clients and investors on Wednesday, May 9th. B. Riley analyst L. Pipes now forecasts that the energy company will post earnings of ($0.08) per share for the quarter, up from their previous forecast of ($0.12). B. Riley has a “Neutral” rating and a $4.00 price objective on the stock. B. Riley also issued estimates for Foresight Energy’s Q3 2018 earnings at ($0.07) EPS, Q4 2018 earnings at ($0.08) EPS, FY2018 earnings at ($0.35) EPS, FY2019 earnings at ($0.26) EPS and FY2020 earnings at ($0.39) EPS.

  • [By Joseph Griffin]

    Foresight Energy (NYSE:FELP) released its quarterly earnings results on Tuesday. The energy company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.08), reports. Foresight Energy had a negative net margin of 18.78% and a negative return on equity of 3.93%.

Top 5 Energy Stocks To Own Right Now: Oasis Petroleum Inc.(OAS)

Advisors’ Opinion:

  • [By Lee Jackson]

    Oasis Petroleum Inc. (NYSE: OAS) was downgraded to Hold from Buy at Jefferies, with a $14 price target. The Wall Street consensus target is set at $14.56. The shares closed trading on Friday at $12.86.

  • [By Stephan Byrd]

    Element Capital Management LLC bought a new position in shares of Oasis Petroleum Inc. (NYSE:OAS) during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 19,645 shares of the energy producer’s stock, valued at approximately $159,000.

  • [By Garrett Baldwin]

    Oil prices are at levels we haven’t seen in years. U.S. crude topped $70 for the first since 2014, as U.S. President Donald Trump appeared increasingly likely to pull out of the Iran nuclear deal and reinforce sanctions on Tehran. In addition, OPEC has announced plans to bolster prices and cap production. For oil investors, Money MorningGlobal Energy Strategist Dr. Kent Moors says it’s time to buckle up. According to Moors, revoking the Iran deal would cause “price chaos” around the globe. And that’s right as driving season starts in the United States. Here’s more on the coming chaos for oil. In deal news, Blackstone Group (NYSE: BX) announced it will purchase Gramercy Property Trust (NYSE: GPT) for $7.6 billion in cash. Grammercy manages commercial real estate. While this may seem like a boring deal, Blackstone is buying a business that churns out cold hard cash for its investors. We want to keep this deal on your radar, because there are many other deals like this coming down the pipeline. We’re going to be discussing one of the best real estate opportunities available very soon – so keep an eye out for updates.
    Three Stocks to Watch Today: AMZN, AAPL, TSN, SBUX
    Shareholders of Amazon.com Inc. (Nasdaq: AMZN) cheered statements made by Warren Buffett over the weekend. The Oracle of Omaha said he messed up by not investing in Amazon and Alphabet Inc. (Nasdaq: GOOGL). “I made the wrong decisions on Google and Amazon,” Buffett said on Saturday. “We’ve looked at it. I made the mistake in not being able to come to a conclusion where I really felt that at the present prices that the prospects were far better than the prices indicated.” Buffett says he now has a “very, very, very high opinion” of Amazon CEO Jeff Bezos. The Oracle believes that Bezos has created something that is “close to a miracle.” Apple Inc. (Nasdaq: AAPL) added another 0.6% Monday, to reach $185.00 per share – a new 52-week high. The uptick came after Warren Buffett announced

  • [By Stephan Byrd]

    UBS Group AG cut its holdings in Oasis Petroleum Inc. (NYSE:OAS) by 2.0% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 730,530 shares of the energy producer’s stock after selling 15,269 shares during the quarter. UBS Group AG’s holdings in Oasis Petroleum were worth $5,917,000 as of its most recent SEC filing.

Top 5 Energy Stocks To Own Right Now: Atlas Energy, L.P.(ATLS)

Advisors’ Opinion:

  • [By Max Byerly]

    Atlas Energy Group (OTCMKTS: ATLS) and Transglobe Energy (NASDAQ:TGA) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Top 5 Energy Stocks To Own Right Now: PBF Logistics LP(PBFX)

Advisors’ Opinion:

  • [By Logan Wallace]

    PBF Logistics (NYSE:PBFX) issued its quarterly earnings results on Thursday. The pipeline company reported $0.43 earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.06), MarketWatch Earnings reports. PBF Logistics had a net margin of 33.57% and a return on equity of 56.03%. The company had revenue of $64.00 million for the quarter, compared to the consensus estimate of $67.75 million. During the same quarter in the previous year, the business earned $0.55 earnings per share. PBF Logistics’s revenue was up 5.8% compared to the same quarter last year.

Top 10 Energy Stocks For 2019

Dover Corp (NYSE:DOV) files its latest 10-K with SEC for the fiscal year ended on December 31, 2017. Dover Corp is a multi-business operator in North America. It has footprint in engineered systems, energy, fluids and refrigeration and food equipment businesses. Dover Corp has a market cap of $15.17 billion; its shares were traded at around $97.35 with a P/E ratio of 18.91 and P/S ratio of 1.96. The dividend yield of Dover Corp stocks is 1.86%. Dover Corp had annual average EBITDA growth of 4.90% over the past ten years.

For the last quarter Dover Corp reported a revenue of $2 billion, compared with the revenue of $1.8 billion during the same period a year ago. For the latest fiscal year the company reported a revenue of $7.8 billion, an increase of 15.2% from last year. For the last five years Dover Corp had an average revenue growth rate of 1.6% a year.

The reported diluted earnings per share was $5.15 for the year, an increase of 58.5% from previous year. Over the last five years Dover Corp had an average EPS decline of 2.2% a year. The Dover Corp had a decent operating margin of 11.68%, compared with the operating margin of 10.52% a year before. The 10-year historical median operating margin of Dover Corp is 14.36%. The profitability rank of the company is 8 (out of 10).

Top 10 Energy Stocks For 2019: Genesis Energy, L.P.(GEL)

Advisors’ Opinion:

  • [By Lisa Levin] Companies Reporting Before The Bell
    Celgene Corporation (NASDAQ: CELG) is projected to report quarterly earnings at $1.96 per share on revenue of $3.46 billion.
    Aon plc (NYSE: AON) is expected to report quarterly earnings at $2.8 per share on revenue of $2.93 billion.
    American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) is estimated to report quarterly earnings at $0.81 per share on revenue of $1.75 billion.
    Alibaba Group Holding Limited (NYSE: BABA) is expected to report quarterly earnings at $0.88 per share on revenue of $9.27 billion.
    LifePoint Health, Inc. (NASDAQ: LPNT) is projected to report quarterly earnings at $1.13 per share on revenue of $1.62 billion.
    V.F. Corporation (NYSE: VFC) is estimated to report quarterly earnings at $0.65 per share on revenue of $2.90 billion.
    Newell Brands Inc. (NYSE: NWL) is expected to report quarterly earnings at $0.26 per share on revenue of $3.05 billion.
    Titan International, Inc. (NYSE: TWI) is projected to report quarterly earnings at $0.04 per share on revenue of $407.27 million.
    Boise Cascade Company (NYSE: BCC) is expected to report quarterly earnings at $0.45 per share on revenue of $1.09 billion.
    Cheniere Energy, Inc. (NYSE: LNG) is estimated to report quarterly earnings at $0.39 per share on revenue of $1.59 billion.
    Cboe Global Markets, Inc. (NASDAQ: CBOE) is projected to report quarterly earnings at $1.24 per share on revenue of $308.05 million.
    ITT Inc. (NYSE: ITT) is estimated to report quarterly earnings at $0.73 per share on revenue of $683.96 million.
    Fred's, Inc. (NASDAQ: FRED) is expected to report quarterly loss at $0.19 per share on revenue of $551.00 million.
    Virtu Financial, Inc. (NASDAQ: VIRT) is projected to report quarterly earnings at $0.52 per share on revenue of $288.31 million.
    Cheniere Energy Partners, L.P. (NYSE: CQP) is expected to report quarterly earnings at $0.57 per share on revenue of $1.38 billion.
    Genesis Energy, L.P
  • [By Joseph Griffin]

    Stifel Financial Corp cut its stake in shares of Genesis Energy, L.P. common stock (NYSE:GEL) by 1.7% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 450,749 shares of the pipeline company’s stock after selling 7,788 shares during the quarter. Stifel Financial Corp owned about 0.37% of Genesis Energy, L.P. common stock worth $8,884,000 as of its most recent SEC filing.

  • [By Max Byerly]

    Blair William & Co. IL cut its stake in Genesis Energy, L.P. common stock (NYSE:GEL) by 21.6% in the first quarter, HoldingsChannel.com reports. The fund owned 55,817 shares of the pipeline company’s stock after selling 15,409 shares during the period. Blair William & Co. IL’s holdings in Genesis Energy, L.P. common stock were worth $1,100,000 as of its most recent filing with the Securities and Exchange Commission.

  • [By ]

    Genesis Energy LP (NYSE: GEL)
    Billing itself as a “growth-oriented master limited partnership,” GEL concentrates its efforts on providing services around and within refineries primarily located on the Gulf Coast. Management is committed to logical double-digit growth as well as strengthening its distribution coverage. At $20.80 per unit, GEL yields 11.8% and trades at a nearly 40% discount to its 52-week high.

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on Genesis Energy, L.P. common stock (GEL)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Energy Stocks For 2019: Recon Technology, Ltd.(RCON)

Advisors’ Opinion:

  • [By Shane Hupp]

    Media coverage about Recon Technology (NASDAQ:RCON) has been trending positive recently, Accern Sentiment reports. The research firm rates the sentiment of media coverage by reviewing more than twenty million blog and news sources. Accern ranks coverage of companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Recon Technology earned a media sentiment score of 0.27 on Accern’s scale. Accern also assigned media headlines about the oil and gas company an impact score of 44.9374991541436 out of 100, meaning that recent media coverage is somewhat unlikely to have an effect on the stock’s share price in the immediate future.

Top 10 Energy Stocks For 2019: InterOil Corporation(IOC)

Advisors’ Opinion:

  • [By Stephan Byrd]

    Media headlines about InterOil (NYSE:IOC) have been trending somewhat positive this week, Accern Sentiment Analysis reports. The research group identifies positive and negative news coverage by monitoring more than twenty million blog and news sources in real time. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable. InterOil earned a coverage optimism score of 0.16 on Accern’s scale. Accern also assigned news articles about the oil and gas company an impact score of 45.5148763796823 out of 100, indicating that recent news coverage is somewhat unlikely to have an impact on the stock’s share price in the next several days.

Top 10 Energy Stocks For 2019: PBF Logistics LP(PBFX)

Advisors’ Opinion:

  • [By Logan Wallace]

    PBF Logistics (NYSE:PBFX) issued its quarterly earnings results on Thursday. The pipeline company reported $0.43 earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.06), MarketWatch Earnings reports. PBF Logistics had a net margin of 33.57% and a return on equity of 56.03%. The company had revenue of $64.00 million for the quarter, compared to the consensus estimate of $67.75 million. During the same quarter in the previous year, the business earned $0.55 earnings per share. PBF Logistics’s revenue was up 5.8% compared to the same quarter last year.

Top 10 Energy Stocks For 2019: Ideal Power Inc.(IPWR)

Advisors’ Opinion:

  • [By Logan Wallace]

    Ideal Power (NASDAQ: IPWR) and Hollysys Automation Technologies (NASDAQ:HOLI) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

  • [By Max Byerly]

    Headlines about Ideal Power (NASDAQ:IPWR) have been trending somewhat positive recently, according to Accern Sentiment. The research group scores the sentiment of press coverage by reviewing more than 20 million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of negative one to one, with scores closest to one being the most favorable. Ideal Power earned a daily sentiment score of 0.09 on Accern’s scale. Accern also gave media headlines about the industrial products company an impact score of 46.8284728476176 out of 100, meaning that recent press coverage is somewhat unlikely to have an impact on the stock’s share price in the near future.

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Ideal Power (IPWR)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Ideal Power (IPWR)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    Here are some of the news headlines that may have effected Accern Sentiment’s rankings:

    Get Ideal Power alerts:

    Ideal Power (IPWR) Expected to Announce Quarterly Sales of $390,000.00 (americanbankingnews.com) -$0.15 EPS Expected for Ideal Power (IPWR) This Quarter (americanbankingnews.com) Ideal Power Receives 1.1 Megawatt Purchase Order for its SunDial Plus Inverters (investingnews.com) Ideal Power Receives 1.1 Megawatt Purchase Order for its SunDial Plus Inverters from NEXTracker for One of the Largest Solar-and-Storage Installations in Iowa (finance.yahoo.com)

    A number of equities analysts have commented on the stock. Zacks Investment Research raised shares of Ideal Power from a “hold” rating to a “buy” rating and set a $1.50 price target for the company in a research note on Wednesday, January 10th. HC Wainwright reissued a “buy” rating and issued a $4.00 price target on shares of Ideal Power in a research note on Wednesday, March 7th. Roth Capital reissued a “hold” rating and issued a $1.00 price target on shares of Ideal Power in a research note on Wednesday, March 7th. Finally, B. Riley cut shares of Ideal Power from a “buy” rating to a “neutral” rating and cut their price target for the stock from $5.00 to $2.50 in a research note on Wednesday, March 7th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the stock. Ideal Power currently has a consensus rating of “Hold” and a consensus price target of $3.00.

Top 10 Energy Stocks For 2019: Matador Resources Company(MTDR)

Advisors’ Opinion:

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Matador Resources (MTDR)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    Matador Resources (NYSE: MTDR) and SandRidge Mississippian Trust II (NYSE:SDR) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Top 10 Energy Stocks For 2019: Oasis Petroleum Inc.(OAS)

Advisors’ Opinion:

  • [By Lee Jackson]

    Oasis Petroleum Inc. (NYSE: OAS) was downgraded to Hold from Buy at Jefferies, with a $14 price target. The Wall Street consensus target is set at $14.56. The shares closed trading on Friday at $12.86.

  • [By Jon C. Ogg]

    Oasis Petroleum Corp. (NYSE: OAS) was raised to Overweight from Equal Weight with a $19 target price (versus a $12.52 close) at Morgan Stanley.

    Old Dominion Freight Line Inc. (NASDAQ: ODFL) was started as Buy at Argus.

  • [By Shane Hupp]

    Oasis Petroleum Inc. (NYSE:OAS)’s share price traded up 3.9% during trading on Monday . The stock traded as high as $13.85 and last traded at $13.26. 306,129 shares changed hands during mid-day trading, a decline of 96% from the average session volume of 8,402,742 shares. The stock had previously closed at $13.80.

Top 10 Energy Stocks For 2019: Natural Gas(NG)

Advisors’ Opinion:

  • [By Money Morning News Team]

    Canadian gold mining company NovaGold Resources Inc. (NYSE: NG) shows an even starker change in sentiment. In the last six months, the volume of short bets on the stock declined 32.75%, from 19.05 million shares to 12.81 million.

  • [By Shane Hupp]

    JPMorgan Chase set a GBX 870 ($11.80) target price on National Grid (LON:NG) in a research note released on Monday. The brokerage currently has a buy rating on the stock.

  • [By Money Morning Staff Reports]

    Canadian gold mining company NovaGold Resources Inc. (NYSE: NG) shows an even starker change in sentiment. In the last 12 months, the volume of short bets on the stock declined 79%, to 522,400.

  • [By Stephan Byrd]

    Wells Fargo & Company MN lowered its stake in shares of NovaGold Resources Inc. (NYSEAMERICAN:NG) (TSE:NG) by 5.1% in the first quarter, HoldingsChannel.com reports. The institutional investor owned 1,071,600 shares of the mining company’s stock after selling 57,571 shares during the period. Wells Fargo & Company MN’s holdings in NovaGold Resources were worth $4,640,000 as of its most recent SEC filing.

Top 10 Energy Stocks For 2019: Brunswick Corporation(BC)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Brunswick Co. (NYSE:BC) insider William Metzger sold 13,530 shares of the firm’s stock in a transaction that occurred on Tuesday, June 5th. The stock was sold at an average price of $67.42, for a total transaction of $912,192.60. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

  • [By Rich Duprey]

    Pontoon boats are a versatile vessel as they can be used for fishing, sports, cruising, and day trips. That latter part is key because rival boatmaker Brunswick (NYSE:BC) — which Polaris used to have a business relationship with when it was in the marine market — says that overnight trips with boats are fading. Industry site Boat Industry quotes Brunswick’s freshwater boat group President Jeff Kinsey as saying, “There’s been a clear shift toward day boating, and that speaks directly to the pontoon with its seating capacity, its open space, its amenities and its comfort.”

  • [By Stephan Byrd]

    ILLEGAL ACTIVITY WARNING: “$1.15 Billion in Sales Expected for Brunswick Co. (BC) This Quarter” was first reported by Ticker Report and is the sole property of of Ticker Report. If you are reading this story on another publication, it was illegally stolen and reposted in violation of U.S. and international trademark & copyright law. The correct version of this story can be viewed at www.tickerreport.com/banking-finance/3380347/1-15-billion-in-sales-expected-for-brunswick-co-bc-this-quarter.html.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on Brunswick (BC)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Energy Stocks For 2019: Ion Geophysical Corporation(IO)

Advisors’ Opinion:

  • [By Shane Hupp]

    Janney Montgomery Scott started coverage on shares of Ion Geophysical (NYSE:IO) in a research note issued to investors on Tuesday, MarketBeat Ratings reports. The brokerage issued a buy rating and a $35.00 target price on the oil and gas company’s stock.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on Ion Geophysical (IO)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Max Byerly]

    ION Geophysical (NYSE: IO) and Glencore (OTCMKTS:GLNCY) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Hot Blue Chip Stocks To Own Right Now

May 22, 2018: Markets opened higher again Tuesday but it’s been a bumpy day ever since, especially for the blue chips. Trading has been mixed all day with the energy sector the day’s biggest loser while financials and utilities have performed best. The FOMC releases the tea leaves, uh, minutes, of its latest meeting tomorrow. A slightly weakening dollar and still-high 10-year yields pretty much offset each other.

WTI crude oil for June delivery closed at $72.13 a barrel, down about 0.2% for the day. The July contract settled down about 0.2% at $72.20. June gold added about 0.1% on the day to settle at $1,292.00. Equities were headed for lower close about 10 minutes before the bell as the Dow traded down 0.69% for the day, the S&P 500 traded down 0.26%, and the Nasdaq Composite traded down 0.12%.

Bitcoin futures (XBTM8) for June delivery traded at $8,195, down about 2.4% on the CBOE after opening at $8,420 this morning. The trading range today was $8,170 to $8,450.

Hot Blue Chip Stocks To Own Right Now: PHH Corp(PHH)

Advisors’ Opinion:

  • [By Logan Wallace]

    PHH (NYSE: PHH) and Orix (NYSE:IX) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

  • [By Max Byerly]

    Orix (NYSE: IX) and PHH (NYSE:PHH) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

  • [By Max Byerly]

    PHH (NYSE:PHH) is scheduled to be announcing its earnings results after the market closes on Tuesday, May 8th. Analysts expect the company to announce earnings of ($0.94) per share for the quarter.

Hot Blue Chip Stocks To Own Right Now: INTL FCStone Inc.(INTL)

Advisors’ Opinion:

  • [By Shane Hupp]

    INTL FCStone (NASDAQ:INTL) was upgraded by investment analysts at TheStreet from a “c” rating to a “b-” rating in a note issued to investors on Monday.

  • [By Logan Wallace]

    INTL FCStone (NASDAQ:INTL) released its earnings results on Tuesday. The financial services provider reported $1.18 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.98 by $0.20, Bloomberg Earnings reports. INTL FCStone had a positive return on equity of 3.32% and a negative net margin of 0.02%.

  • [By Max Byerly]

    INTL FCStone (NASDAQ:INTL) shares reached a new 52-week high and low during trading on Monday . The company traded as low as $47.87 and last traded at $47.95, with a volume of 2050 shares trading hands. The stock had previously closed at $47.30.

Hot Blue Chip Stocks To Own Right Now: Express-1 Expedited Solutions Inc.(XPO)

Advisors’ Opinion:

  • [By ]

    Daseke (DSKE) : “I’m going to send you to XPO Logistics (XPO) . That’s the one you want to be in.”

    Portola Pharmaceuticals (PTLA) : “The news is already in this story. I’d rather be in something better.”

  • [By ]

    For his final “Executive Decision” segment, Cramer also checked in with Brad Jacobs, chairman and CEO of XPO Logistics (XPO) , the transportation provider with shares up 16% in 2018.

  • [By ]

    In the Lightning Round, Cramer was bullish on Idexx Laboratories (IDXX) , XPO Logistics (XPO) , Diamondback Energy (FANG) and Illinois Tool Works (ITW) .

  • [By Rich Duprey, Nicholas Rossolillo, and Maxx Chatsko]

    Yet finding the best stocks to buy and hold isn’t easy. So to help get you started, we asked three Foolish investors to pick a growth stock that they believe investors would be wise to buy now and hold for the long term. Read on to learn why they like SunPower (NASDAQ:SPWR), salesforce.com (NYSE:CRM), and XPO Logistics (NYSE:XPO).

  • [By ]

    TheStreet’s founder and Action Alerts PLUS Portfolio Manager Jim Cramer said XPO Logistics (XPO) is a remarkable company.

    Cramer said UPS (UPS) has labor problems and people think FedEx (FDX) is expensive. “XPO has got a lot of things that they can do,” Cramer said. “They’re in M&A mode.”

  • [By Neha Chamaria]

    Right now, I believe Mastercard (NYSE:MA), Brookfield Renewable Partners(NYSE:BEP), and XPO Logistics(NYSE:XPO) fall right into place, because each stock has been a multibagger and has strong tailwinds behind it.

Hot Blue Chip Stocks To Own Right Now: PBF Logistics LP(PBFX)

Advisors’ Opinion:

  • [By Logan Wallace]

    PBF Logistics (NYSE:PBFX) issued its quarterly earnings results on Thursday. The pipeline company reported $0.43 earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.06), MarketWatch Earnings reports. PBF Logistics had a net margin of 33.57% and a return on equity of 56.03%. The company had revenue of $64.00 million for the quarter, compared to the consensus estimate of $67.75 million. During the same quarter in the previous year, the business earned $0.55 earnings per share. PBF Logistics’s revenue was up 5.8% compared to the same quarter last year.

PBF Logistics: Cheap For A Reason

Yield-chasing is everywhere nowadays, and that includes within the midstream space. Retail investors have seemed a little bit flummoxed on why PBF Logistics (NYSE:PBFX) has experienced such negative results, particularly as corporate sponsor PBF Energy (NYSE:PBF) has performed moderately well. Since the IPO of its midstream assets back in 2014, PBF Energy has been volatile, but is now flat on its performance over that time frame, in spite of having significant ownership of PBF Logistics. That firm, meanwhile, has lost 28% of value in its common stock, despite increasing its distribution from $0.16/quarter to $0.48/share as of the last declaration. What gives?

Monitoring PBF Energy Health, Overall Production Volumes

Before I get into exactly why PBF Logistics has had such a rough go of it, it is worth exploring PBF Energy’s business model, since substantially all of PBF Logistics’ revenue is sourced from its corporate sponsor. PBF Energy relies heavily on being able to purchase and process heavy, sour crude oil feedstock – most of PBF Logistics’ assets revolve around supplying that product, or transporting products refined from that base. While it may not seem intuitive, the sour crude the company sources from mid-continent plays (such as North Dakota sour) and from Canada are generally priced based on West Texas Intermediate (“WTI”), which is a light/sweet crude. The Toledo facility is the exception as it processes less heavy grades of crude, but both PBF Energy and PBF Logistics generate only a small portion of their revenue from the Toledo refinery, which was acquired from Sunoco in 2010. As a result, PBF Energy benefits quite heavily when the spread between North Sea Brent crude oil (which is what is most international refiners price on) and WTI, as well as the regional discount (how far below WTI can the company acquire feedstock from producers). From a competition standpoint, the wider the differential between Brent and WTI, the more cost-advantaged U.S. refiners are when it comes to global competition, particularly refiners like PBF Energy that source nearly all of their oil feedstock domestically.

Recently, the spread between the two has expanded, with Brent rising to a roughly $6.50/barrel premium to crude oil. Historically, this isn’t always the case. Before fracking became what it is today, WTI generally traded at a premium versus a discount. As it is lighter and sweeter, it is cheaper to refine into gasoline and other refined petroleum products. WTI’s availability changed market dynamics, and recent growth in the spread is due to OPEC’s production cut deal, alongside a few non-OPEC countries like Russia. Today, there are simply less Brent-derived barrels out there; supply and demand at work. The potential of U.S. oil exports hamstrings this ratio a bit, as at current levels, it is currently economic for oil to be exported off our shores and transported to Europe for processing at facilities that can handle it. The infrastructure is still being built out to support crude export, but in a short time, there will be little likelihood of expansion of the Brent/WTI differential beyond the current pricing. In my opinion, this is “peak value” time for domestic refiners of WTI-based feedstock. Even the most bullish of sell-side analysts forecast current spreads as – at best – a new reality. Most expect contraction; PBF Energy expects it settle in the $4.00/share range in the long run. If you look at current Brent/WTI futures through the Intercontinental Exchange (“ICE”), you’ll find that futures traders are pricing in a fairly healthy decline in the spread throughout 2018.

Refiners aren’t asleep at the wheel. Overall, refinery utilization according to the EPA was 92.8% in August, higher than the average of 90.5% over the past ten years. Last month’s utilization figure of 95.0% was the highest since 2004. Such small incremental changes might not seem like much, but when you realize that U.S. refiners are processing more than 18mm barrels per day, small increases like these results in a lot more product. PBF Energy CEO Thomas Nimbley had this to say about the company’s 3Q 2017 utilization:

We had five operating refineries, we achieved record throughput levels, and we were able to capitalize on strong market conditions. While one quarter is not victory, we feel that this quarter is reflective of the true potential of our assets.

Investors should keep in mind that the Northeastern assets for PBF Energy (Delaware City, Paulsboro) have historically had the worst gross refining margins, simply due to the products used, their cost, and the lower complexity rating. This will become very important later on. The Toledo facility has the highest margin, but is capacity-constrained (which is why there was no throughput volume increases this year; its already running near nameplate capacity). The case is similar with the Torrance Valley facility. Outside of a little incremental capacity, PBF Logistics is seeing the highest utilization of its assets that it is going to get; particularly during its most recently-reported quarter (Q3 2017). This is a high water mark for the firm, and as a result, is a high water mark for PBF Logistics.

The Upcoming Cliff; Rail and Trucking Falling Out Of Favor

Unfortunately, PBF Logistics does not break down the utilization rates of its various assets anymore. They stopped doing this in the middle of last year, which I find a little disingenuous, because once you dig into the numbers, it becomes apparent why. While PBF Logistics no longer discloses throughput, in the short time that they did, it was clear that throughput through the Delaware City Rail and West Rack assets were collapsing after the agreements were set. From 2014 to 2015, oil processed through the Delaware City Rail collapsed from 74,400bpd to 33,300bpd, before increasing incrementally in 2016 (then disclosures stop):
At the end of Q2 2016, the last time they made throughput disclosure, the Rail Terminal was at a 36,400bpd run-rate, with West Rack at 10,400bpd. This is the single biggest reason why investors should avoid this firm; these two assets. As a reminder, MVCs on these assets are 85,000bpd for the Delaware City Rail agreement (expires beginning of 2022) and 40,000bpd for West Rack (also early 2022). PBF Energy is receiving $2.00/barrel at Delaware City Rail up to the MVC, as well as $2.20/barrel at West Rack. These two assets are responsible for at least $94mm in revenue for PBF Logistics, more once you consider the company also receives payments for ancillary services it provides. That is nearly one third of the top line.

These contracts have renewal options, but they are at PBF Energy’s option. There is absolutely no reason for them to agree to extend these assets at current terms. While PBF Energy is a key shareholder, at the end of the day, the general partner is going to protect its own interests first. Come 2022, investors are going to face a harsh cut in both distributable cash flow (“DCF”) and EBITDA once these contracts are renegotiated. Asset level margins are not known, but consolidated EBITDA for PBF Logistics is in the 65-70% EBITDA margin range. Assuming the MVC agreements get cut in half (at best) with similar dollar/barrel terms, this is (at least) a $32mm EBITDA headwind on the horizon, which would eliminate 17% of Q3 2017 run-rate annual EBITDA. That still builds in some improvement from likely current levels, as management alluded to “improving” rail fundamentals lately (without quantifying).

Further stressing the firm is the current strong operating environment outside of Delaware City at PBF Energy. Dollars paid per barrel on volumes above MVCs are substantially lower than below the commitment within the agreements, but this is also likely close to free money given the low variable costs. Investors should expect some weakness there as well in the medium-term. As an example, total throughput through all of the Pipeline assets (Delaware City, Torrance Valley) averaged 137,000bpd in Q3; MVCs for those assets (in totality) are 110,000bpd. Split there is roughly 50/50, with a lot of the gains in throughput in recent years coming from increased crude product being processed in the Northeast (Hint: away from truck and rail). Back in 2015 and early 2016, flow through the Delaware City Pipeline assets was around the MVC threshold. Given the tight refining margins already present at Delaware City, the likelihood is that processed volumes are going to get cut there first in the event of a decline in spreads, with volumes bumping up against that MVC threshold at the Pipeline assets. As mentioned, payrates on volumes above the MVC are incremental, so this isn’t a large deal (roughly $3mm annual EBITDA impact), but it is another bump on top of an already stressed model. In a nutshell, you’re a PBF Logistics shareholder, I would be watching Delaware City/Paulsboro refinery health like a hawk over the next several years.

Diversification and Balance Sheet Health, Takeaway

Management’s plan here is to get out from under any pesky financial covenants (see the move after Q3 close, where the company offered $175mm in additional 6.875% notes due 2023, which is in addition to the $350mm in outstanding UPB on the same terms. The pricing of these notes is very telling; 6.875% is a high rate of interest in today’s environment for most midstream firms once you consider PBF Logistics does not carry a lot of leverage, and that is likely due to the maturity date falling after the aforementioned terminaling contract expirations. Creditors see this issue just as much as I do.

Diversification is likely also the name of the game. The firm recently completed two organic growth projects, a 625,000 crude oil storage tank at Chalmette, as well as a 24 inch natural gas pipeline to connect the Paulsboro refinery to natural gas sourced from Utica and Marcellus shale. Total annualized EBITDA contribution is expected to be $12mm, and represents a good return on the company’s $82mm in total project investment. Dropdowns could be a source as well; such as a potential drop of the remaining 50% in the Torrance Valley Pipeline from PBF Energy; another $175mm to get full ownership of that asset would go a long way towards further diversification, as well as contributing another $20mm in EBITDA. Current leverage of 3.2x net debt/EBITDA does allow a little wiggle room.

In a nutshell, there are very real and valid reasons that this midstream firm trades at 10% yield. PBF Energy’s Northeastern refinery assets will be under stress if differentials weaken and crack spreads narrow(as expected), and that is certainly not going to help PBF Logistics’ terminal assets exposure problem there. The longer this goes on, expect management to be very careful in increasing the dividend further; while Q3 2017 coverage looked gorgeous at 1.4x, they are going to need to leave a little bit of meat on the table in case those assets do not turn around, and negotiations force steep cuts in the contracts. Expect a lot of focus on management in the coming years on further diversification, whether organic or via dropdown – ideally away from Delaware City if at all possible.

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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