Since the beginning of the year, the stock markets have been experiencing wild price swings driven by rising investor concerns over high inflation, growing tensions related to Ukraine and Russia hostilities, and forthcoming Federal Reserve Bank interest rate increases. The benchmark S&P 500 index is down 8% year-to-date and 4.6% over the past three months.
However, several S&P 500 stocks, including Occidental Petroleum Corporation (OXY), Halliburton Company (HAL), and Marathon Oil Corporation (MRO), are up more than 30% in price year-to-date. These energy stocks have been in focus of late as Brent crude crossed the $100 a barrel for the first time since 2014. The escalating tensions between major oil-exporting and transportation countries Russia and Ukraine have caused oil prices to skyrocket.
Given this backdrop, we think it could be wise to add these stocks to one’s watchlist.
Occidental Petroleum Corporation (OXY)
OXY in Houston, Tex., is an energy company that is engaged in oil and gas exploration and production activities in the United States, the Middle East, and Africa. The company operates through three segments: Oil and Gas; Chemical; and Midstream and Marketing.
On Oct. 13, 2021, OXY announced that it had agreed to sell its interests in two offshore fields in Ghana for $750 million to Kosmos Energy and Ghana National Petroleum Corp. The sale will likely help the company reduce its debt.
OXY’s revenue increased 90.2% year-over-year to $7.91 billion for the fourth quarter, ended Dec. 31, 2021. The company’s adjusted net income came in at $1.44 billion, versus an adjusted net loss of $610 million. Also, its adjusted EPS was $1.48, compared to a $0.65 adjusted loss per share.
Analysts expect OXY’s EPS and revenue for the quarter ending March 31, 2022, to increase 813.3% and 25.2%, respectively, year-over-year to $1.07 and $6.86 billion. The stock has gained 33.6% in price year-to-date to close the last trading session at $38.74.
OXY’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system.
It has an A grade for Momentum and a B grade for Growth and Sentiment. It is ranked #24 out of 82 stocks in the A-rated Energy – Oil & Gas industry. Click here to see the additional ratings of OXY for Value, Stability, and Quality.
Halliburton Company (HAL)
HAL provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data to the drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through the Completion and Production segment and the Drilling and Evaluation segment. HAL is headquartered in Houston, Tex.
On Jan. 31, 2022, HAL introduced Obex IsoLock; a new compression set packer that prevents casing pressure. It is an effective barrier to mitigate fluid migration and support multiple-stage cementing through integrated stage cementing ports in the tool. Cementing’s VP Matt Lang said, “Along with the cement barrier, the Obex IsoLock packer collar provides our customers with additional assurance to prevent fluid migration that can lead to SCP. As a result, it can eliminate the need for future remediation and reduce the carbon footprint.”
HAL’s revenue increased 32.1% year-over-year to $4.27 billion for the fourth quarter, ended Dec. 31, 2021. The company’s adjusted net income increased 29% sequentially to $320 million. Also, its adjusted EPS came in at $0.36, representing a 28.5% increase sequentially.
For the quarter ending March 31, 2022, HAL’s EPS and revenue are expected to increase 78.9% and 25.4%, respectively, year-over-year to $0.34 and $4.21 billion. It surpassed the Street’s EPS estimates in each of the trailing four quarters. The stock has gained 42.2% in price year-to-date to close the last trading session at $32.53.
HAL’s POWR Ratings reflect solid prospects. It has a B grade for Momentum, Sentiment, and Quality.
Within the Energy – Services industry, it is ranked #12 of 42 stocks. To see the additional ratings of HAL for Growth, Value, and Stability, click here.
Marathon Oil Corporation (MRO)
Houston. Tex.-based exploration and production company MRO operates through the United States and international segments. Its United States segment explores, produces, and markets crude oil and condensate, natural gas liquids, and natural gas. Its international segment produces and markets liquefied natural gas and methanol in Equatorial Guinea.
MRO’s total revenues and other income increased 116.8% year-over-year to $1.80 billion for the fourth quarter, ended Dec. 31, 2021. The company’s adjusted net income increased 90.9% sequentially to $592 million. Also, its adjusted EPS came in at $0.77, representing an increase of 97.4% sequentially.
Analysts expect MRO’s EPS and revenue for the quarter ending March 31, 2022, to increase 209.5% and 45.6%, respectively, year-over-year to $0.65 and $1.55 billion. It surpassed consensus EPS estimates in each of the trailing four quarters. The stock has gained 33.2% in price year-to-date to close the last trading session at $21.88.
MRO’s POWR Ratings reflect solid prospects. The stock has an overall B rating, equating to a Buy in our proprietary rating system.
It has an A grade for Momentum and Quality and a B grade for Growth and Sentiment. It is ranked #8 of 82 stocks in the Energy – Oil & Gas industry. Click here to see the other ratings of MRO for Value and Stability.
OXY shares were trading at $42.50 per share on Monday morning, up $3.76 (+9.71%). Year-to-date, OXY has gained 46.60%, versus a -8.19% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
3 Stocks in the S&P 500 Up More Than 30% YTD StockNews.com
