Investors looking for stocks to buy and watch should check out the IBD Screen Of The Day, a column that focuses on a list of top ideas in the IBD Stock Screener. Today's IBD screen highlights the Top-Rated Stocks Under $10 screen, featuring energy stock leaders Evolution Petroleum, Epsilon Energy and Southwestern Energy.
U.S. oil prices jumped Tuesday after Saudi Arabia's energy minister said recent market volatility could make OPEC+ lower the amount of oil it produces, according to Bloomberg. West Texas Intermediate futures rallied almost 4%, trading near $94 a barrel. Meanwhile, U.S. natural-gas futures hit 14-year highs this week.
Stocks To Buy And Watch: Southwestern
Southwestern Energy, a Texas-based natural gas producer, is rapidly moving up the right side of a cup base, according to IBD MarketSmith chart analysis. Shares reversed from big gains to fall around 4% Tuesday. With the stock about 15% away from its latest entry, look for a handle to offer a lower entry.
In the most recent quarter, earnings and sales surged 74% and 294%, respectively, vs. the year-ago period. Amid strong fundamentals and big price gains in recent weeks, the stock boasts a 98 out of a 99 IBD Composite Rating, according to the IBD Stock Checkup.
While it's a low-priced stock, Southwestern has a market cap of more than $9 billion.
Two Other Energy Stocks To Watch
Among other energy stocks to buy and watch, Epsilon Energy rallied 2.7% Tuesday, extending a win streak to four sessions. The Houston-Texas based company primarily focuses on the Marcellus basin in Pennsylvania and the Anadarko basin in Oklahoma.
Epsilon stock is building a cup base that has an 8.09 buy point. Shares are about 5% away from the latest entry. Bullishly, the stock's relative strength line hit a new high Tuesday, confirming the energy stock as a market leader.
Evolution Petroleum is nearing a double bottom's 7.85 buy point amid the stock's 6.3% rise Tuesday. EPM stock has a perfect 99 IBD Composite Rating and a 97 RS Rating.
Outside of the IBD Screen Of The Day, IBD Leaderboard stock and liquefied natural gas producer Cheniere Energy rallied 3.7% Tuesday and is sharply extended beyond a 150.10 buy point.
