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AMC   7.30 (+6.88%)
PYPL   86.25 (+2.36%)
PFE   44.11 (+0.64%)
NFLX   226.74 (+1.19%)
S&P 500   3,688.40 (+0.91%)
DOW   29,474.22 (+0.73%)
QQQ   277.00 (+0.96%)
AAPL   153.16 (+1.59%)
MSFT   238.98 (+0.64%)
META   137.74 (+1.00%)
GOOGL   99.04 (+0.89%)
AMZN   116.10 (+0.83%)
TSLA   286.69 (+3.87%)
NVDA   125.65 (+2.76%)
NIO   17.66 (+0.23%)
BABA   79.45 (+0.68%)
AMD   67.98 (+2.53%)
T   15.91 (+1.53%)
MU   50.00 (+2.29%)
CGC   2.85 (+4.01%)
F   12.08 (+0.75%)
GE   64.74 (+0.61%)
DIS   98.52 (+0.41%)
AMC   7.30 (+6.88%)
PYPL   86.25 (+2.36%)
PFE   44.11 (+0.64%)
NFLX   226.74 (+1.19%)
S&P 500   3,688.40 (+0.91%)
DOW   29,474.22 (+0.73%)
QQQ   277.00 (+0.96%)
AAPL   153.16 (+1.59%)
MSFT   238.98 (+0.64%)
META   137.74 (+1.00%)
GOOGL   99.04 (+0.89%)
AMZN   116.10 (+0.83%)
TSLA   286.69 (+3.87%)
NVDA   125.65 (+2.76%)
NIO   17.66 (+0.23%)
BABA   79.45 (+0.68%)
AMD   67.98 (+2.53%)
T   15.91 (+1.53%)
MU   50.00 (+2.29%)
CGC   2.85 (+4.01%)
F   12.08 (+0.75%)
GE   64.74 (+0.61%)
DIS   98.52 (+0.41%)
AMC   7.30 (+6.88%)
PYPL   86.25 (+2.36%)
PFE   44.11 (+0.64%)
NFLX   226.74 (+1.19%)
S&P 500   3,688.40 (+0.91%)
DOW   29,474.22 (+0.73%)
QQQ   277.00 (+0.96%)
AAPL   153.16 (+1.59%)
MSFT   238.98 (+0.64%)
META   137.74 (+1.00%)
GOOGL   99.04 (+0.89%)
AMZN   116.10 (+0.83%)
TSLA   286.69 (+3.87%)
NVDA   125.65 (+2.76%)
NIO   17.66 (+0.23%)
BABA   79.45 (+0.68%)
AMD   67.98 (+2.53%)
T   15.91 (+1.53%)
MU   50.00 (+2.29%)
CGC   2.85 (+4.01%)
F   12.08 (+0.75%)
GE   64.74 (+0.61%)
DIS   98.52 (+0.41%)
AMC   7.30 (+6.88%)
PYPL   86.25 (+2.36%)
PFE   44.11 (+0.64%)
NFLX   226.74 (+1.19%)

3 Oil Stocks to Buy Before the Reopening

3 Oil Stocks to Buy Before the Reopening

Investors wanted to stay far away from the oil patch in 2020. Millions of Americans sheltered in place in an effort to slow the spread of the novel coronavirus. Airlines were grounded. Cruise lines were under a no sail order. After that the law of supply and demand took over.

It’s not a new story. When the economy is going well, it’s been good news for oil stocks. And when the economy struggles, the opposite is true. But neither oil companies nor investors ever had to account for a global pandemic. And now investors have to decide what to do with oil stocks as they are in recovery mode.

The price of crude oil recently went back over $60 a barrel. And with millions of Americans getting vaccinated every week, the pent-up demand is beginning to gain momentum. As it does investors are beginning to realize that there’s an opportunity in oil and gas stocks.

There’s ample evidence to show that renewable energy sources are going to be a significant part of America’s future. However in the here and now, oil and gas companies still have a significant role to play. With that in mind, these three stocks look to be in growth mode for opportunistic investors.

Baker Hughes

There has been much written and discussed about the closing of the Keystone pipeline. Putting that aside, there is still drilling activity happening. That’s bullish for Baker Hughes (NYSE:BKR). The company provides oilfield products and services. And Baker Hughes is reporting increased activity in a number of oil fields, including in the Permian basin – the most prolific basin in the United States.

As long as oil companies are drilling, there will be a demand for the products that Baker Hughes provides. BKR stock is down 13.5% since closing above $25 on February 24. However, the stock is still up 109% in the last 12 months. Furthermore, the consensus opinion of analysts gives the stock a buy rating and recent price targets suggest that the stock has significant upside.


Plus, there is reason to believe that Baker Hughes has a future in the green energy economy. The company recently announced that it has entered into a global exclusive licensing agreement with SRI International to use SRI’s Mixed Salt Process for carbon capture.

Hess Corp.

Hess Corporation (NYSE:HES) is an independent energy company that is involved in crude oil and natural gas exploration and production. HES stock remained fairly stable during 2020. In fact, there was a bullish surge in early summer as investors jumped the gun on a recovery.

However, since the initial EUA for a Covid-19 vaccine, HES stock has been pointing true north. The stock is up 100% since November 5. That just confirms that many investors understand that the country will still be driving internal combustion vehicles for at least a little while longer.

Hess also has a consensus buy rating from the 16 analysts that offer ratings. And while the consensus price target suggests a lower price, recent price targets are significantly higher. Investors can also take confidence from the fact that HES stock is well supported with 79% institutional ownership.

Valvoline Corp.

The last stock on the list is a play on the idea that millions of Americans may begin to start having a morning commute again. And that means that there are likely to be oil changes and other services that weren’t necessary when cars weren’t being driven.

That may be an oversimplification, but that’s part of the fundamental case for Valvoline (NYSE:VVV). In the first two quarters of the company’s 2021 fiscal year, Valvoline is already reporting 17% higher earnings per share and nearly 10% year-over-year revenue growth. That tracks nicely with the price of VVV stock that has climbed approximately 30% in that time.

Valvoline has 92% institutional ownership and also has a dividend that has grown for four consecutive years.

Hess is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Hess (HES)
3.1991 of 5 stars
$102.37+1.6%1.47%21.73Moderate Buy$136.08
Valvoline (VVV)
2.708 of 5 stars
$26.05+0.5%1.92%10.85Buy$37.75
Baker Hughes (BKR)
2.9213 of 5 stars
$21.13+3.3%3.41%-49.14Moderate Buy$36.05
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Hess right now?

Before you consider Hess, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hess wasn't on the list.

While Hess currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Chris Markoch

About Chris Markoch

Contributing Author: Retirement, Individual Investing

Chris Markoch is a freelance financial copywriter with over five years of experience covering various aspects of the financial markets. You may find his writing a little different than other stock articles you’ve read. And that’s OK with him. Chris doesn’t have a traditional finance background. What he does bring to the table is a strong business and marketing background having worked for agencies that serviced Fortune 500 companies. With that in mind, he isn’t overly impressed with what companies say, and more focused on what they do. And because buyer behavior dictates so much of what happens with a stock, Chris always keeps the end consumer close in mind. Chris has been writing for MarketBeat since 2018.

Contact Chris Markoch via email at CTMarkoch@msn.com.
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