While U.S. equities overall remain rangebound, energy stocks are on the move on Wednesday with crude oil moving back above the $47-a-barrel level thanks to a surprise inventory draw, the largest since 2016. This comes despite a ramp up in U.S. production to the highest levels since August 2015.
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And yet gasoline demand is actually moving lower, at a time when seasonality would suggest an increase ahead of the summer driving season.
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Whether the rebound in the energy stock will persist remains to be seen. But for now, after weeks of selling pressure, a number of stocks in the sector are enjoying rebounds and upside breakouts. Here are five to watch if you’re bullish on energy.
Energy Stocks to Buy: ConocoPhillips (COP)
ConocoPhillips (NYSE:COP) shares have pushed back up and over their 50-day moving average, finding support at its 200-day moving average near $46 over the last two weeks. That sets up a return to prior highs near $50 ahead of a possible retest of the mid-December high of $53, which would be worth a 10%+ gain from here.
COP will next report results on August 1 before the market opens. Analysts are looking for earnings of 10 cents per share on revenues of $7 billion.
Investors shrugged off a downward revision of last week’s quarterly loss of 2 cents per share to a loss of 14 cents on a write down of its Shenandoah well in the Gulf of Mexico.
Energy Stocks to Buy: Suncor Energy Inc. (USA) (SU)
Suncor Energy Inc. (USA) (NYSE:SU) shares are breaking up and out of a six-month downward consolidation range, returning to levels last seen in late February. Shares were added to Goldman’s Conviction Buy list on April 5. But today’s action marks the first significant rally for the company since September.
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SU will next report results on July 26 after the close. Analysts are looking for earnings of 22 cents per share on revenues of $6 billion. The company reported better-than-expected earnings and raised its forward operating guidance on April 27.
Energy Stocks to Buy: Phillips 66 (PSX)
Phillips 66 (NYSE:PSX) shares are once again challenging overhead resistance near its 200-day moving average, a level that has limited the stock price since February. A breakout now would setup a return to the December high near $88, which would be worth a 10%+ move from here.
On April 28, PSX reported better-than-expected earnings of 56 cents per share; 6 cents ahead of estimates.
The company will next report results on July 28 before the bell. Analysts are looking for earnings of $1.12 per share on revenues of $28.9 billion.
Energy Stocks to Buy: Marathon Petroleum Corp (MPC)
Marathon Petroleum Corp (NYSE:MPC) shares are pushing up and out of a long sideways consolidation range going back to December. Overhead congestion looms, however, as the $57-a-share level has provided resistance since the summer of 2015.
On April 27, MPC reported mixed quarterly results. Earnings of 6 cents per share beat estimates by 10 cents; but revenues missed despite growing 27.8% from the year prior.
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The company will next report results on July 27 before the bell. Analysts are looking for earnings of $1.12 per share on revenues of $19.29 billion.
Energy Stocks to Buy: Baker Hughes Incorporated (BHI)
Baker Hughes Incorporated (NYSE:BHI) shares are breaking up and out of a smooth, six-month-long downtrend. Watch for a run at the December high near $68, which would be worth a 13% gain from current levels.
On April 25, BHI reported a smaller-than-expected loss of 4 cents per share (17 cents ahead of estimates) on a 15.3% drop in revenues (in-line with estimates).
The company will next report results on July 25 before the bell. Analysts are looking for a loss of 12 cents per share on revenues of $2.4 billion.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to Investorplace readers. Redeem by clicking the links above.