Hess Corporation’s Market Dynamics: Key Data and Trends
Analyzing Hess Corporation’s Performance in the Energy Sector
Hess Corporation (HES), based in New York, is a global energy company engaged in the exploration, production, development, transportation, and marketing of crude oil, natural gas liquids, and natural gas. With a market cap of $43.6 billion, Hess is a major player in the energy industry.
Falling into the “large-cap” category, defined as companies valued at $10 billion or more, Hess demonstrates significant size and stability. The company is recognized for its substantial asset portfolio and efficient extraction methods. Innovations in technology and a commitment to sustainability further enhance Hess’s competitive edge. Its worldwide operations and diversified energy offerings provide resilience and growth potential in a changing market.
Currently, HES shares are trading 13.1% below the 52-week high of $163.98, achieved on March 29. Notably, HES has experienced a 10.5% gain in the last three months, showing stronger performance compared to the US Oil & Gas Exploration & Production Ishares ETF (IEO), which rose by 4.5% during the same period.
In terms of long-term performance, HES is down 1.2% year-to-date (YTD), but the stock has appreciated by 5.9% over the past 52 weeks. In comparison, the ETF has shown a slight increase of 1.1% in 2024 and a 4.1% gain over the previous year.
Since early October, HES has traded above its 50-day moving average; however, it has faced some volatility recently. The stock has remained below its 200-day moving average since early December.
On December 6, Hess shares saw a drop of more than 1%, aligning with the trend of other energy stocks, as WTI crude prices fell over 1% to a two-and-a-half-week low.
Hess Corporation released its Q3 results on October 30, posting an adjusted EPS of $2.14 and revenues of $3.2 billion, exceeding expectations. However, concerns arose as HES shares dipped slightly, partly due to declining crude oil prices, which fell to $77.06 per barrel from $84.07 a year earlier, raising doubts about future profitability.
In contrast, Marathon Oil Corporation (MRO), another prominent player, surpassed HES and the IEO with an 18.2% gain YTD and 12.8% returns over the past year.
Looking ahead, Wall Street remains moderately positive about Hess’s outlook. The stock carries a consensus rating of “Moderate Buy” from 14 analysts, and the average price target of $163.69 suggests a 14.9% upside potential from current levels.
On the date of publication, Kritika Sarmah 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. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
