• Best stocks to buy now
  • Contact
  • Disclaimer
Friday, August 12, 2022
No Result
View All Result
  • ItalianoItaliano
Best Stocks
  • News
  • Best stocks to buy nowHOT
    Wall Street’s best stocks to buy now in the fourth quarter

    Best Stocks To Buy Now: August 08, 2022

    DM stock news

    Roku stock (NASDAQ: ROKU) recovers after missing EPS Q2 2022 by 20.18%. This is why.

    Best Stocks To Buy Now

    Best Stock To Buy Now : August 06, 2022

    Trending Tags

    • BABA
    • DIS
    • TSLA
    • SKLZ
    • NYSE: GME
  • Categories
    • Crypto
    • Dow Jones Today
    • Pre-IPO and Startups
    • Tech Stocks
    • Utility Stocks
  • Data & Tools
    • Indices
    • Portfolio Tracker
    • Stock Quotes
    • Stock Targets
  • About us
  • News
  • Best stocks to buy nowHOT
    Wall Street’s best stocks to buy now in the fourth quarter

    Best Stocks To Buy Now: August 08, 2022

    DM stock news

    Roku stock (NASDAQ: ROKU) recovers after missing EPS Q2 2022 by 20.18%. This is why.

    Best Stocks To Buy Now

    Best Stock To Buy Now : August 06, 2022

    Trending Tags

    • BABA
    • DIS
    • TSLA
    • SKLZ
    • NYSE: GME
  • Categories
    • Crypto
    • Dow Jones Today
    • Pre-IPO and Startups
    • Tech Stocks
    • Utility Stocks
  • Data & Tools
    • Indices
    • Portfolio Tracker
    • Stock Quotes
    • Stock Targets
  • About us
No Result
View All Result
Best Stocks
Home Best Stocks to Buy Now

Are the best stocks to be found in the Energy sector?

by Roberto Liccardo
January 21, 2022
in Best Stocks to Buy Now, Utility Stocks
0
The best stocks to be found in the Energy sector

Source: Getty Images

10
SHARES
340
VIEWS
Share on FacebookShare on Twitter
Contents hide
1 The energy opportunity
2 Energy stocks are bullish predicting a recovery in oil
3 2021 is a bull market

The energy opportunity

The energy opportunity
Source: Getty Images

Consumers look to solar with storage solutions to guarantee dependability of electricity.

Enphase Energy and SolarEdge Technologies are two stocks that Goldman recommends for gaining exposure to the energy storage market, and both have a buy rating.

The latter manufactures microinverters, a type of specialized inverter, and has also made inroads into the energy storage market. According to Goldman, Enphase’s battery revenue increased 33 percent quarter over quarter in the first quarter of 2021, driven by a 31 percent increase in shipments.

SolarEdge currently sells an inverter with a third-party battery from Tesla or LG Chem, but the company is developing its own residential battery that will be manufactured in-house.

“Management has noted that meaningful revenue from the new battery product is expected to begin in 3Q21, and that the company expects over $100mm in battery storage revenue in 2021, which we note would represent more than 6% of our total modeled revenue estimates for the company,” the firm said.

Goldman expects SolarEdge to rise more than 10% to $290 in the next year.

Analysts led by Brian Lee also see potential for residential home installers Sunrun and Sunnova, as the two companies offer storage options in addition to installing rooftop panels.

Sunrun expects installations of its Brightbox system to more than double year over year in 2021, according to Goldman. Over the last year, the company has expanded the product’s footprint, and it is now available in 21 states and territories, up from 12 a year ago. In May the firm called Sunrun, which is the largest U.S. residential solar installer, a “bellwether,” arguing that shares can jump more than 30% to $69.

Sunnova predicted that battery attachment rates — the number of residential solar customers who choose storage — would “climb rapidly in 2021,” with the company having enough supply to meet demand. Goldman has a $57 price target on the stock, implying a 60% increase from Thursday’s closing price.

Energy stocks are bullish predicting a recovery in oil

Energy stocks are bullish predicting a recovery in oil
Source: Getty Images

The six months to 2021 have elapsed, and energy stocks are already on pace for their best year in more than three decades.

Krinsky is among those who believe the recent rally in crude oil and energy stocks has been overdone, and he advises investors to sell crude oil and energy stocks in general. Technically, he noted that the $420 to $450 level served as support — a floor — for the group over the last decade. During the Covid sell-off, however, the sector fell below that critical level, breaking below $200, as the pandemic ground economies around the world to a halt.

Since then, the S&P Energy Sector has recovered and traded as high as $420 on Thursday, inching closer to their previous support level, which now acts as resistance, or where an uptrend could be expected to reverse.

“When you break a very important support like that, it’s often difficult to exceed that — at least on the first try,” Krinsky observed.

Although judging performance from January 1 may appear arbitrary, he added that the sector’s outperformance is noticeable from virtually any date. Over the last eight months, the group has returned more than 90%, which Krinsky claims is more than twice the previous highest such gain in the last three decades.

“Even on a rolling basis,” he said, “this is somewhat unprecedented.” His bearish outlook on the sector is also influenced by the collapse of other commodities, such as lumber and copper. The latter is currently breaking its uptrend, and Krinsky noted that copper was a leading indicator for the 2020 low, reaching a bottom one month ahead of West Texas Intermediate Crude futures.

Marathon Oil has gained nearly 93 percent this year, making it the best-performing energy stock in the S&P 500.

Diamondback Energy is up about 80% year to date, and Devon Energy is up more than 70%. Occidental and EOG Resources have increased by more than 60%.

Despite the outperformance, the group remains unloved by Wall Street, as factors such as environmental, social, and corporate governance investing cause investors to avoid the sector. According to Bank of America, the entire sector accounts for only 2% of the average long-only portfolio, or less than half of the allocation to Facebook, which is 4.2 percent.

Energy still accounts for a small portion of the S&P 500, but as the sector’s weighting grows, fund managers who avoid it risk missing out on returns.

MRB Partners reiterated its overweight rating on the group on Thursday, stating that the recovery in demand for petroleum products, combined with ongoing supply constraints, should drive up oil prices, resulting in additional returns for energy stocks.

In a note to clients, strategists led by Salvatore Ruscitti wrote, “Strengthening cash flows, leaner cost structures, and improved capital discipline position the industry to moderately increase capital returns to shareholders.” “The reflationary backdrop and our expectations for a weaker US dollar will benefit relative performance.”

When it comes to specific stocks, Gilman Hill Asset Management CEO Jenny Harrington owns Chevron, Oneok, and Kinder Morgan, among others. She stated on Thursday’s “Halftime Report” that it is critical to consider the big picture. While oil is at its highest level in nearly two and a half years, it is trading at roughly half the price it was a few years ago. On the other hand, it is significantly higher than it was in June 2020, when the pandemic began.

“They’re all trading at a fraction of the market multiple,” Harrington said of her energy holdings. “They all have hefty dividend yields,” she added, arguing that “there’s a lot of room to go here” due to strong earnings growth.

2021 is a bull market 

2021 is a bull market
Source: Getty Images

According to Ned Davis Research, global equities will gather throughout the rest of 2021 as the economic recovery increases.

The company entered overweight stocks and underweight bonds in 2021, experts said this week in a research report. This may continue, even though they are watchful for indications of excessive confidence that may lead to complacency and “deceive” global markets.

This year, earnings results were increasingly slowing expectations, but this trend may start slowing. Nevertheless, rather than a double digit bear market, the company anticipates setbacks in a single digit.

The firm forecasts global growth of 6.1 percent, with the services sector leading the recovery, and that short-term price increases will be temporary.

According to Ned Davis Research, the Covid pandemic remains the greatest risk to the country’s economic outlook, exacerbated by people’s reluctance to get the vaccine, the slow rollout in emerging economies, and the risk of removing monetary and fiscal stimulus too soon. Earlier this week, the Federal Reserve announced that interest rates would remain unchanged, that inflation would rise to 3.4 percent in 2021, and that it would continue its monthly asset-purchase program.

Ned Davis Research has been bearish on the dollar all year and expects it to continue to fall in inverse correlation with gold.

“As it remains unlikely that nominal and real interest rate differentials will increase the chances of a dollar recovery in the second half,” analysts wrote in the report, “the ongoing dollar weakness should remain consistent with the uptrend in gold.”

US yields are lower, but remain attractive on a nominal basis after hedging costs are deducted.

The firm continues to favor credit and stated that, while outperformance has recently stalled, breadth and momentum remain positive. Credit conditions are favorable, and high-yield bonds should perform well in the second half, according to analysts.

Tags: 2021 marketEnergy StocksOil Stock
Roberto Liccardo

Roberto Liccardo

Roberto holds a Master's Degree in Communication and proudly wears his 15 years of direct and managerial experience in intensive Digital Marketing and Financial Analytics. He was the founder of Good Noon, a Digital Marketing Agency awarded by Expertise among the top 10 best marketing agencies in San Francisco in 2020.

Latest

TLS stock news

TLS’s (Telos) second-quarter earnings per share growth reported at 7 cents more than expected

10 mins ago
AMR stock news

Price Target Increased to $189 at B.Riley for Alpha Metallurgical Resources (AMR) PT.

1 hour ago

Popular News

  • AMZN Stock Forecast

    Amazon Stock Forecast And Price Prediction (Updated August 2022)

    17 shares
    Share 0 Tweet 0
  • Tesla Stock: Buy Now Or After Split?

    15 shares
    Share 0 Tweet 0
  • Stocks to buy now – April 2nd, 2022

    16 shares
    Share 0 Tweet 0
  • In response to a Nasdaq request for further information, Vinco Ventures (BBIG) has been put on hold.

    0 shares
    Share 0 Tweet 0
  • Fidelity 500 Index Fund (FXAIX) Performance Over Time.

    207 shares
    Share 0 Tweet 0

Free Stocks Recommendations

Get notified everytime we recommend a stock.
Marketing by

DISCLAIMER

Nothing on this website should be considered personalized financial advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security.

The Best Stocks, its managers, its employees, affiliates and assigns (collectively “The Company”) do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above.

READ MORE

Follow us on Social Media
Facebook – YouTube – Twitter

Write for us
Finance – Business

Best-Stocks-Logo_dark

Categories
Best Stocks to buy now
Crypto
Dow Jones Today
Pre-IPO and Startups
Tech stocks
Utility Stocks

Data and Tools
Quote
Target
Wealth
Converter
Dow Jones Today

Best Stocks to Buy Now

We are a financial media dedicated to providing stock recommendations, news, and real-time stock prices.

Newsletter

Get free stock recommendations and real-time news. Our portfolio has returned over 100% in 2020.

Marketing by
  • Disclaimer
  • Best stocks to buy now
  • Contact
  • Write for us – Finance, Crypto

© 2022 Best Stocks

No Result
View All Result
  • Home
  • News
  • Best stocks to buy now
  • Categories
    • Crypto
    • Dow Jones Today
    • Pre-IPO and Startups
    • Tech stocks
    • Utility Stocks
  • Data & Tools
    • Indices
    • Portfolio Tracker
    • Stock Quotes
    • Stock Targets
  • About us
  • English
  • Italiano

© 2022 Best Stocks