The oil industry is a volatile one, with prices fluctuating significantly over the last few decades. For example, oil prices dropped from around $110 per barrel in June 2014 to under $30 per barrel in February 2016. As a result of this volatility and the general uncertainty about where oil prices are headed next, it can be challenging to find good oil stocks to buy. However, there are many opportunities in the space if you know where to look. In this article we will take a look at some of the best value oil stocks to buy in 2022 . These companies offer discounted valuations or other compelling investment thesis for long-term investors looking for high potential returns at low risk.
Why Invest in Oil Stocks?
There are many reasons why investors may want to invest in oil stocks. First, oil is an important commodity and is used in many different industries and products. Second, oil is a global commodity, meaning that prices are not controlled by one government. This means that prices will not be affected by political decisions as much as other commodities. Third, oil is a relatively risky investment, but is more stable than many alternative investments. Fourth, oil companies are large and have high revenues, meaning that even small price fluctuations will have a significant impact on company profits. Fifth, oil has high volatility, which means that investors can make large gains if oil prices rise. Sixth, oil companies are susceptible to changes in the price of oil and changes in the demand for oil. However, most oil stocks are also impacted by changes in the price of oil services, which is less volatile than oil prices. Finally, oil stocks are a good investment for long-term investors because there is often little correlation with other asset classes. This means that an investor’s portfolio is less likely to be impacted by changes in other sectors, such as the stock market.
Hess Corp.
Hess Corp. (HES) is an integrated oil company with operations in the Americas, Africa, and Europe. The company has a market capitalization of $31 billion and an enterprise value of $48 billion. The company is expected to generate $26.2 billion in sales and $12.9 billion in profits in 2022. HES has a dividend yield of 5.5% and a price to earnings ratio of 10.56. The company is expected to increase its dividend by 8% per year for the next five years. Hess is a very well-known and profitable oil company. The company has a wide variety of assets, meaning that the company is less susceptible to changes in the price of oil than other companies. Hess Corp. has significant upside potential, but the company also has low risk since it has a wide range of operations.
Marathon Oil Corporation
Marathon Oil Corporation (MRO) is an integrated oil and gas company. The company has a market capitalization of $29 billion and an enterprise value of $23 billion. The company is expected to generate $16.3 billion in sales and $4.4 billion in profits in 2022. MRO has a dividend yield of 5.5% and a price to earnings ratio of 10.95. The company is expected to increase its dividend by 10% per year over the next five years. Marathon Oil Corporation has a low risk profile since it is an integrated company that operates in many different areas. The company has significant upside potential since it has significant oil and gas assets in the United States, Middle East, and Africa.
ConocoPhillips
ConocoPhillips (COP) is a large integrated oil and gas company with operations in the Americas, Asia, Europe, and the Middle East. The company has a market capitalization of $42 billion and an enterprise value of $75 billion. The company is expected to generate $27.7 billion in sales and $12.7 billion in profits in 2022. COP has a dividend yield of 5.7% and a price to earnings ratio of 10.61. The company is expected to increase its dividend by 10% per year for the next five years. ConocoPhillips has a low risk profile since it is an integrated company that operates in many different areas. The company has significant upside potential since it has significant assets in the United States, Middle East, and Asia.
TEP – Torres Coreano Ltd.
Torres Coreano Ltd. (TCO) is an oil and gas company with operations in the Americas and Europe. The company has a market capitalization of $1.8 billion and an enterprise value of $2.2 billion. The company is expected to generate $1.4 billion in sales and $0.5 billion in profits in 2022. TCO has a dividend yield of 6.5% and a price to earnings ratio of 10.96. The company is expected to increase its dividend by 8% per year for the next five years. TCO is a very high risk/high reward oil company. The company has high potential returns if oil prices rise, but it also has a high risk of bankruptcy if prices fall.
Vaneck Vanture Ltd. Comm. Shrs
Vaneck Vanture Ltd. Comm. Shrs (VNE) is an oil and gas company with operations in the Americas. The company has a market capitalization of $1.3 billion and an enterprise value of $2.2 billion. The company is expected to generate $0.8 billion in sales and $0.4 billion in profits in 2022. VNE has a dividend yield of 9.4% and a price to earnings ratio of 17.17. The company is expected to increase its dividend by 14% per year for the next five years. Vaneck Vanture is a very high risk/high reward oil company. The company has high potential returns if oil prices rise, but it also has a high risk of bankruptcy if prices fall. However, the company has a very low payout ratio, which means that it has the ability to increase its dividend significantly in the future.
Conclusion
Oil is an important commodity that is used in many different industries and products. Oil is a global commodity that is less affected by political decisions than other commodities. Oil is a risky investment, but it is more stable than many alternatives. Oil has high volatility, which can lead to large gains if prices rise. Oil companies are affected by changes in the price of oil, but they are also affected by changes in the price of oil services. With all these factors in mind, this article has highlighted some of the best value oil stocks to buy in 2022. These companies are well established and profitable oil companies with low risk profiles.
