Recently, the S&P 500 had its best month since 2020. A better-than-expected second-quarter earnings season has helped to lessen worries about stubbornly increasing inflation, assertive Federal Reserve interest rate hikes, and the geopolitical situation between Russia and Ukraine. As of July 31st, the S&P 500 was still down almost 13% for the year, but a few top-performing companies defied the gloomy trend.
Oil and gas equities profiting from the increasingly successful industry come with noteworthy positives – such as robust growth numbers – among the top performers I found. These stocks have market caps of at least $1 billion and trade on significant U.S. exchanges. I was pleasantly surprised when doing my research, and I hope the information finds itself helpful to you as well.
Now, I’ll break down three “favorites” I settled on for this list due to their impressive track records during troublesome times. Analysts agree that these make for innovative portfolio picks:
Occidental Petroleum Corp (OXY)
Occidental Petroleum Corp (OXY) acquires, explores, and develops oil and gas resources in the U.S., the Middle East, Africa, and Latin America. OXY primarily develops and produces oil and natural gas. OXY’s chemical segment manufactures and sells chemicals such as chlorine, potassium chemicals, ethylene dichloride, sodium silicates, and calcium chloride. OXY also collects, processes, transports, stores, buys, and sells oil, natural gas, NGLs (natural gas liquids), carbon dioxide, and electricity. This division of OXY also invests in businesses and trades around its assets, which include transportation and storage space. OXY was established in 1920 and is based in Houston, Texas.
OXY stock has increased 127.7% so far this year. For its current quarter, OXY shows an EPS of $2.78, at $9.8 billion in sales. OXY has shown plenty of resilience when needed, and the firm has exceeded analysts’ earnings projections for the past four consecutive quarters. Most recently, OXY beat EPS by 4.32% and revenue by 9.10%. In the previous quarter, it beat forecasts by 4.41% and 5.87%, respectively. OXY’s year-over-year growth numbers in the crucial areas are remarkable: Revenue – 79.19%; Net Income – 3545.63%; EPS – 3570%; Net Profit Margin – 1932.95%. OXY currently has a dividend yield of 0.79%, with a quarterly payout of 13 cents per share. The median 12-month price target for OXY from analysts providing yearly estimates is 71.00, with a high of 110.00 and a low of 52.00. The median forecast reflects an increase of 8.10% over its last price, and analysts tell us to buy OXY.
Scorpio Tankers Inc (STNG)
Scorpio Tankers Inc (STNG) and its subsidiaries are involved in the seaborne transportation of refined petroleum products in global shipping markets. STNG‘s network of ships consisted of 124 owned, financed, leased, or bareboat chartered-in tankers as of March 2022, comprising 42 LR2 (Long Range 2), 6 LR1, 62 MR (Medium Range), and 14 Handymax (huge bulk-carriers) with a weighted average age of about 6.2 years. STNG was established in 2009 and is headquartered in Monaco.
Due to rising tanker prices following Russia’s invasion of Ukraine, STNG has reduced its debt by $511 million this year. Additionally, STNG‘s cash balance has climbed from $231 million to around $592 million in 2022. In the second quarter, vessel revenue nearly quadrupled year-over-year to $405 million. STNG’s stock has increased 204.3% so far this year. For the first quarter of 2022, STNG surpassed expert EPS projections by 5.31% and revenue by 15.92%. In Q2, STNG beat by 53.72% and 9.15%, respectively. Year-over-year growth is high in the key areas, and growth is only forecasted to continue annually and quarterly. STNG has a dividend yield of 0.95%, with a quarterly payout of 10 cents per share. STNG has a consensus price target of 50.00, with a high estimate of 55.00 and a low of 10.50 from the analysts that provide annual price projections. The consensus estimate reflects an 18.34% gain over STNG’s most recent price, and it comes with a buy rating that appears to be well-earned.
Target Hospitality Corp (TH)
Target Hospitality Corp. (TH) is a North American rental and hospitality services firm. TH operates a network of specialty rental housing facilities totaling nearly 16,000 beds spread over 27 localities, 26 of which are owned. Maintenance, cleaning, grounds-keeping, security, health and leisure, and laundry services are also provided by TH. TH offers workforce housing and additional temporary accommodation for mining, oil and gas drilling, large-scale events, government organizations, and disaster assistance. TH is a Woodlands, Texas-headquartered corporation that was founded in 1978.
TH’s stock has been rising all year. TH shares increased by more than 31% when it upped its revenue projection for 2022 by 53% in response to the news of a new government contract. TH shares are up 177.8% since the new deal was announced and are currently up 286.2% overall in 2022. For the last quarter of 2021, TH impressively blew by analysts’ EPS predictions by a margin of 285.96% and revenue by 8.34% to close out 2021. Year-over-year numbers are healthy: Revenue – 76.59%; Net Income – 103.76%; Net Profit Margin – 102.11%. Although TH doesn’t currently offer a dividend, there can be some very decent returns here. TH’s analysts issuing 12-month price estimates have a consensus target of 20.00, with a high of 20.00 and a low of 18.00. The median forecast is a 57.23% gain from the previous pricing, and the consensus also agrees on giving TH’s buy rating a chance to work its charm, especially at its current price range.
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