The conflict between Israel and Hamas in the Middle East has sparked tensions and led Iran to call for restrictions on oil supplied to the region by Muslim nations, in support of Palestine. As a result, WTI Crude Oil has seen a significant spike, reaching $88 a barrel. With disruptions in the global oil supply chain becoming increasingly likely, it’s a good time to consider investing in energy stocks that have recently been added to the Zacks Rank #1 (Strong Buy) list.
APA: Riding High on Global Oil Supply Disruptions
APA, a leading independent energy company engaged in the exploration and production of natural gas and crude oil, is well-positioned to capitalize on global oil supply disruptions. With operations in the U.S., U.K, and Egypt, APA stands to reap higher profits. Notably, APA’s earnings estimates for fiscal 2023 and FY24 have recently increased by 11% and 17% respectively. Despite a decrease of 8% in stock price this year, APA has seen a remarkable surge of 371% over the last three years, making it an attractive investment option.
Marathon Oil: A Strong Performer with Potential for Growth
Marathon Oil is an integrated exploration and production company that has displayed strong price performance and is likely to continue its upward trajectory with rising oil prices. The stock has witnessed a modest 6% increase year-to-date and an impressive 623% surge over the last three years. Furthermore, earnings estimates for FY23 and FY24 have experienced significant growth of 14% and 18% respectively. Trading at an attractive 10.5X forward earnings multiple, Marathon Oil presents an enticing investment opportunity.
Weatherford International: Consider This Oilfield Services Provider
Weatherford International is an oilfield and equipment services provider that is deserving of investors’ consideration. With a stock that has soared 85% year-to-date and an astounding 637% over the last three years, Weatherford International has been a strong performer. While earnings estimates have seen modest growth in the past 60 days, the most intriguing aspect is the bottom line expansion. Fiscal 2023 earnings are anticipated to reach $4.84 per share, a significant increase from $0.86 per share last year. With even more growth expected in FY24, Weatherford International offers potential returns, trading at a reasonable 19.9X forward earnings multiple.
The escalating tensions in the Middle East and the resulting disruption in the global oil supply chain make the strong price performances of these Zacks Oils & Energy sector stocks highly promising. These stocks, which have experienced positive earnings estimate revisions, offer attractive investment opportunities. Seize the chance to invest while the sector is primed for growth.