Hess Corporation (HES), a global integrated energy company with a market cap of $46.6 billion, operates in the oil and gas industry. The New York-based company focuses on the exploration, production, and sale of crude oil (CLN24) and natural gas (NGM24), along with midstream services, including transportation and processing.
Shares of Hess Corporation have underperformed the broader market over the past 52 weeks. HES has gained 13.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.1%. In 2024, shares of HES are up 4.3%, compared to SPX's 10.4% gains on a YTD basis.
Zooming in further, HES has also lagged behind the US Oil & Gas Explor & Prod Ishares ETF's (IEO) 20.7% gains over the past 52 weeks.
Hess Corporation's underperformance can be attributed to uncertainties surrounding its acquisition by Chevron Corporation (CVX) and setbacks in exploration projects, notably in the Kaieteur and Canje blocks in Guyana. Moreover, ExxonMobil Corporation (XOM) has filed an arbitration claim challenging Hess’ proposed sale of its Guyana oil properties, potentially complicating Chevron's bid for Hess.
However, HES stock surged on April 25 following a strong Q1 earnings report, driven by higher oil equivalent production volumes and increased oil and gas prices.
For the current fiscal year, ending in December, analysts expect HES' EPS to grow by 88.9% to $9.54. The company's earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
Among the 14 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on three “Strong Buy” ratings and 11 “Holds.”
This configuration is slightly less bullish than three months before, with four analysts suggesting a "Strong Buy."
On May 16, Susquehanna's analyst Biju Perincheril maintained a "Neutral" rating on Hess Corporation and raised the price target to $167. That implies an upside potential of 11.1% from current levels.
The mean price target of $170.92 represents a premium of 13.7% to HES' current levels. The Street-high price target of $210, assigned by Mizuho, implies a potential upside of 39.7% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
