The price of crude oil has made a remarkable turnaround after a 25% decline in the last six weeks, signaling a potential market bottom. With a robust economy and tight oil supply, oil prices are expected to rally through year-end, creating a perfect storm for energy stocks. Furthermore, with historically low valuations, the downside risk is minimal, making energy stocks extremely compelling for investors.
Liberty Energy: A Bullish Standout
Liberty Energy (LBRT) is a North American oilfield services company that provides critical services and technology to onshore oil and natural gas exploration and production companies. Notably, the company boasts a Zacks Rank #1 (Strong Buy) and is currently trading at a historically depressed valuation, with a one-year forward earnings multiple of 6.1x, well below the industry average of 15.8x. Additionally, Liberty Energy offers a 1% dividend yield, adding to its allure for investors.
Petroleo Brasileiro: An Attractive Prospect
Petroleo Brasileiro (PBR), also known as Petrobras, is a Brazilian multinational energy company and one of the largest integrated oil and gas companies globally. With a Zacks Rank #1 (Strong Buy), the company is trading at a one-year forward earnings multiple of 4.1x, below the industry average of 4.3x, and well below its 10-year median of 8.8x. The upward trend in earnings revisions further enhances the stock’s appeal, making it a compelling investment.
Ecopetrol: A Hidden Gem
Ecopetrol (EC) is a Colombia-based petroleum company focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia and other areas in Colombia and northern Peru. With a Zacks Rank #1 (Strong Buy), the stock presents an unusual bargain, trading at a one-year forward earnings multiple of 5.4x, above the industry average of 4.3x, and below its five-year median of 8x. Remarkably, the company also offers an astounding 19.5% dividend yield, making it an enticing choice for discerning investors.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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