Energy Stocks Have Soared This Year, but, These 3 Still Look Like Great Buys
Sunday, Nov 17, 2024 1:11 pm ET
4min read Energy stocks have been on a tear this year, with many companies reporting strong earnings and share prices soaring. However, not all energy stocks are created equal, and some still look like great buys despite the sector's overall performance. In this article, we'll take a closer look at three energy stocks that stand out from the crowd.
First up is Exxon Mobil Corporation (XOM). Despite its recent acquisition of Pioneer Natural Resources, Exxon Mobil has managed to maintain its dividend and even increase it for the 42nd consecutive year. With a yield of 3.3%, Exxon Mobil offers considerably more passive income than an S&P 500 index fund, which yields around 1.3%. Moreover, the company has a rock-solid balance sheet, with a net-debt-to-capital ratio of just 5%. Exxon Mobil's efficient use of capital, high-margin asset base, reasonable spending plans, and strong balance sheet pave the way for record capital returns to shareholders. The company is on track for a staggering $19 billion in buybacks this year and around $16.5 billion in dividend payments, bringing its total capital return program to $35.5 billion.
Next, we have Smart Sand, Inc. (SND). As a low-cost producer of high-quality Northern White frac sand, Smart Sand is an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained demand in the oil and gas market, SND is expected to see growing demand for its services, reflecting a positive outlook. Smart Sand's business model is focused on providing high-quality products and services to its customers, which should result in steady growth and profitability.
Lastly, we have Nine Energy Service, Inc. (NINE). As a provider of completion and production services to the oil and gas industry, Nine Energy Service has a strong track record of growth and profitability. The company's services are in high demand, particularly in the Permian Basin, where it has a significant presence. With a strong balance sheet and a focus on organic growth, Nine Energy Service is well-positioned to continue its growth trajectory.
In conclusion, while energy stocks have soared this year, there are still plenty of opportunities to be found in the sector. Exxon Mobil, Smart Sand, and Nine Energy Service are three companies that stand out from the crowd and offer compelling investment opportunities. By focusing on companies with strong fundamentals, efficient operations, and a commitment to shareholder value, investors can build a portfolio of energy stocks that will continue to perform well in the years to come.
First up is Exxon Mobil Corporation (XOM). Despite its recent acquisition of Pioneer Natural Resources, Exxon Mobil has managed to maintain its dividend and even increase it for the 42nd consecutive year. With a yield of 3.3%, Exxon Mobil offers considerably more passive income than an S&P 500 index fund, which yields around 1.3%. Moreover, the company has a rock-solid balance sheet, with a net-debt-to-capital ratio of just 5%. Exxon Mobil's efficient use of capital, high-margin asset base, reasonable spending plans, and strong balance sheet pave the way for record capital returns to shareholders. The company is on track for a staggering $19 billion in buybacks this year and around $16.5 billion in dividend payments, bringing its total capital return program to $35.5 billion.
Next, we have Smart Sand, Inc. (SND). As a low-cost producer of high-quality Northern White frac sand, Smart Sand is an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained demand in the oil and gas market, SND is expected to see growing demand for its services, reflecting a positive outlook. Smart Sand's business model is focused on providing high-quality products and services to its customers, which should result in steady growth and profitability.
Lastly, we have Nine Energy Service, Inc. (NINE). As a provider of completion and production services to the oil and gas industry, Nine Energy Service has a strong track record of growth and profitability. The company's services are in high demand, particularly in the Permian Basin, where it has a significant presence. With a strong balance sheet and a focus on organic growth, Nine Energy Service is well-positioned to continue its growth trajectory.
In conclusion, while energy stocks have soared this year, there are still plenty of opportunities to be found in the sector. Exxon Mobil, Smart Sand, and Nine Energy Service are three companies that stand out from the crowd and offer compelling investment opportunities. By focusing on companies with strong fundamentals, efficient operations, and a commitment to shareholder value, investors can build a portfolio of energy stocks that will continue to perform well in the years to come.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.