Oil prices have been hammered lately, faced with a barrage of bearish headlines, but thats exactly why it may be time to jump into the unloved sector, according to one upbeat financial blogger.
Sovereign Man at the ValueWalk blog says now is the time to opportunistically scoop up oil-related stocks
XLE, -0.12%
even as crude-oil futures
CLQ7, +1.52%
LCOU7, +1.61%
struggle to trade above the $50 level.
Top 5 Oil Stocks To Watch Right Now: Crescent Point Energy Corp (16)
Advisors’ Opinion:
- [By Kana Nishizawa]
China Coal Energy Co., the countrys second-largest producer of the fuel, sank 3.1 percent after the government said it will cut coal consumption. Sun Hung Kai Properties Ltd. (16), the worlds second-biggest developer, fell 1.4 percent after trimming its sales target. Gold producers led materials companies lower as the precious metal headed for its steepest weekly loss since June amid expectations the U.S. Federal Open Market Committee will next week decide to reduce stimulus.
Top 5 Oil Stocks To Watch Right Now: Range Resources Corporation(RRC)
Advisors’ Opinion:
- [By Ben Levisohn]
Talk about a Barron’s bounce!Range Resources (RRC) has soared to the top of the S&P 500 today after Barron’s touted it in the pages of the magazine this weekend.
Agence France-Presse/Getty Images
Range Resources gained 4.1% to $28.47, while the S&P 500 slipped 0.3% to2,375.31.
Barron’s Andrew Bary called Range Resources “an unappreciated energy play.” He explains why:
With major market indexes at record highs, natural-gas stocks are among the few depressed industry groups. Blame a warm winter and weakening gas prices.
Range Resources (ticker: RRC), a leading U.S. gas producer, looks undervalued. Its shares, at $27, are down 20% this year and are much below their 52-week high of $47, set last June. Range drilled the first well in the now-prolific Marcellus region of Pennsylvania more than a decade ago and amassed one of its largest land positions there610,000 acres. Its $4.2 billion purchase of Memorial Resource Development last September gave it access to what the company views as a prolific and underappreciated gas region: northern Louisiana
Range Resources’ market capitalization rose to $7 billion today from $6.8 billion on Friday. It reported net income of $521 million on sales of $1.4 billion in 2016.
- [By WWW.THESTREET.COM]
Range Resources (RRC) was upgraded to outperform at BMO. $44 price target The valuation is more attractive, as business fundamentals are improving, BMO said.
- [By Matthew DiLallo]
According to a report by PLS, producers spent more than $23 billion locking up prime positions in the Permian Basin and another $7 billion on Mid-Continent acreage acquisitions. However, most of those were smaller deals, with the top transaction weighing in at $2.5 billion. Meanwhile, the Ark-La-Tex region near the Gulf Coast quietly tied for the second hottest M&A geography in the country, largely because of Range Resources (NYSE:RRC) acquisition of Memorial Resource Development. Range Resources paid $4.2 billion, which includes the assumption of debt, to gain a leading position in the Lower Cotton Valley region of Northern Louisiana. Not only is the play saturated with natural gas, but it’s also near the Gulf Coast, which is expected to see increased demand from new petrochemical and industrial complexes as well as LNG export facilities. In other words, Range Resources made a big bet on higher gas prices along the Gulf Coast.
Top 5 Oil Stocks To Watch Right Now: Apache Corporation(APA)
Advisors’ Opinion:
- [By WWW.THESTREET.COM]
Cramer and the AAP team say news and caution are weighing on energy and health-care sectors. Find out what they’re telling their investment club members about Apache (APA) , Cimarex (XEC) , Arconic (ARNC) and Allergan (AGN) with a free trial subscription to Action Alerts PLUS.
- [By WWW.THESTREET.COM]
Cramer and the Action Alerts PLUS team say they still believe in their embattled Permian names, Cimarex (XEC) and Apache (APA) , both of which have benefited from a slow rotation in recent weeks. These names can produce and profit here. Schlumberger (SLB) remains best in class and Magellan Midstream Partners just might be the best way to play oil given that the pipelines will be needed to transport the new wave of oil able to be drawn out of the ground from increasingly efficient American producers. Get in on the discussion by getting a free trial subscription to Action Alerts PLUS.
- [By Chris Lange]
The S&P 500 stock posting the largest daily percentage loss ahead of the close Tuesday was Apache Corp. (NYSE: APA) which traded down over 7% at $42.51. The stocks 52-week range is $38.14 to $69.00. Volume was over 14 million versus the daily average of 3.4 million shares.
- [By WWW.THESTREET.COM]
Cramer and Jack Mohr think Apache’s (APA) management has positioned the company for growth through both innovation and efficiency. Read what they are telling their investment club members with a free subscription to Action Alerts PLUS.
Top 5 Oil Stocks To Watch Right Now: ONEOK Partners L.P.(OKS)
Advisors’ Opinion:
- [By Garrett Cook]
Citi maintains Buy ratings on Targa Resources (NYSE: TRGP), ONEOK (NYSE: OKE) and Oneok Partners (NYSE: OKS) citing the companies stories around natural gas liquids (NGLs).
- [By Matthew DiLallo]
Energy infrastructure companies ONEOK (NYSE:OKE) and TransCanada (NYSE:TRP) are both emerging from the energy market downturn as stronger entities. Each made smart acquisitions, with TransCanada buying U.S. gas pipeline company Columbia Pipeline Group, while ONEOK is in the process of gobbling up its MLP,ONEOK Partners (NYSE:OKS). While these deals enhanced the growth profiles of both companies, TransCanada still stands out as the better buy for long-term income investors. Here’s why.
Top 5 Oil Stocks To Watch Right Now: Magellan Midstream Partners L.P.(MMP)
Advisors’ Opinion:
- [By WWW.THESTREET.COM]
In the Lightning Round, Cramer was bullish on Treehouse Foods (THS) , TG Therapeutics (TGTX) , Kinder Morgan (KMI) , Magellan Midstream Partners (MMP) , Chesapeake Energy (CHK) and Arconic (ARNC) .
- [By WWW.THESTREET.COM]
Cramer and the AAP team view the strength of corporations as most important in proving that stocks can handle current valuations. Find out what they’re telling their investment club members about Arconic (ARNC) , Apple (AAPL) and Magellan Midstream Partners (MMP) . Get a free trial subscription to Action Alerts PLUS.
- [By WWW.MONEYSHOW.COM]
My more conservative income recommendation from a year ago, Magellan Midstream Partners (MMP), rose by 13% while yielding over 4%.
Following last year’s excellent results, Magellan Midstream remains my Top Pick for income investors for the coming year.
- [By Dustin Parrett]
Magellan Midstream Partners (NYSE: MMP) is a $17.56 billion company that transports and distributes petroleum. MMP is shaping up to be one of the best 2017 oil stocks.
- [By Matthew DiLallo]
For perspective, two of the highest rated MLPs by credit rating agencies are Magellan Midstream Partners (NYSE:MMP) and Enterprise Products Partners (NYSE:EPD). Recently, their leverage ratios were 3.5 times and 4.4 times, respectively. While both Magellan Midstream and Enterprise Products have seen their leverage ratios creep higher in recent quarters due to the oil market downturn and growth spending, neither is a concern.
