3 Hot Energy Stocks To Trade In September
Energy is a hot topic at the best of times, but given the hyper-tense geopolitical situation in Europe and the looming recession, it’s on fire! Today, we’re going to highlight some top energy stocks that you can trade right now. Then we’ll rundown the critical fundamental events coming up this week.
Black Gold Is So In Season
Oil and gas enjoyed a promising start to 2022, successfully rebounding from pandemic lows, as the global economy looked a little brighter. That was, of course, until the morning of February 24.
Russian /Ukraine conflict and the West’s economic reaction heavily destabilised the global markets, but also impacted the energy sector. Russia sits on 1,688 trillion cubic feet (Tcf) of proven gas reserves, more than any other country on the planet.
Oil is a different story, however. Against the backdrop of this geopolitical turmoil, prices have gradually begun to drop.
ICE Brent Crude
Why is this happening? Those March-June highs we can see above caused a shift in consumer behaviour. People began cutting back on buying petrol and driving less to avoid the prohibitive costs, and that drop in demand led to excess supply and subsequent falling prices.
As oil is at a steadier rate, which company stocks could you be looking at right now?
#1 PetroChina Company (PTR)
PetroChina Company Limited is the largest integrated oil company in China, headquartered in Beijing. China’s state-owned China National Petroleum Corporation currently holds a 81.03% stake in the company. In terms of market performance, stock price is up 3.03% YoY and 4.31% in 2022.
With a share price under $50, PetroChina is a great pick at the moment and represents a better value option than its US friends that make up the rest of our list.
Price 01.01: 44.98 USD
Price 02.09: 46.92 USD
% change 2022: +4.31%
PTR stock, YTD
#2 Exxon Mobil Corporation (XOM)
One of the largest companies in the world, Exxon Mobil needs no introduction… But here you go anyway! The company is an American multinational oil and gas corporation headquartered in Texas. It has a workforce of ca. 63,000 (2021), and boy, are they having a good year.
Share price is up over 50% in 2022, and has risen a massive +74.21% YoY. It’s a rather expensive option, but those numbers speak for themselves.
Exxon isn’t all about oil, either. The company also has a burgeoning chemical business and is working to become a leader in climate change mitigation strategies like carbon capture and storage.
Price 01.01: 63.54 USD
Price 02.09: 95.59 USD
% change 2022: +50.44%
XOM stock, 2022
#3 Chevron (CVX)
Chevron Corporation is another American multinational energy corporation and, like Exxon Mobil, is a successor company of Standard Oil. It’s headquartered in California and is active in more than 180 countries around the world.
2022 has also been kind to Chevron, which has seen its share price rise over 32% this year so far, with stock up almost 62% YoY. On the 29th of July, the company reported Q2 revenue of $68.7 billion, representing an 83% increase, year over year.
Price 01.01: 119.26 USD
Price 02.09: 157.85 USD
% change 2022: +32.36%
CVX stock, 2022
What’s your energy stock of choice right now? Which of these stocks do you think will perform best in what remains of 2022? Tweet us your thoughts at @_contentworks!
Top fundamental events this week
Here are all of the main events coming up in what looks like a pretty busy week for the markets.
● GBP — S&P Global/CIPS UK Services PMI Final (AUG)
● AUD — RBA Interest Rate Decision
● USD — ISM Non-Manufacturing PMI (AUG)
● AUD — GDP Growth Rate YoY (Q2)
● EUR — GDP Growth Rate QoQ 3rd Est (Q2); GDP Growth Rate YoY 3rd Est (Q2)
● CAD — Balance of Trade (JUL); BoC Interest Rate Decision
● JPY — GDP Growth Annualised Final (Q2)
● EUR — ECB Interest Rate Decision; ECB Press Conference
● CNY — Inflation Rate YoY (AUG)
● CAD — Employment Change (AUG); Unemployment Rate (AUG)
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The Contentworks team