May 29, 2017
Energy prices are reportedly going downhill in the United States, despite the rapid economic growth of the country. Reliable sources state that not a single energy stock mutual fund in the United States has made money so far, since the beginning of 2017. Fluctuating crude oil and natural gas prices have also apparently resulted in a downfall of the global oil & gas market.
The reduced energy prices however, may be a blessing in disguise for potential investors, the reason being, low prices resulting in an increased sale of stocks. Trade analysts state that the time seems to be ripe for purchasing stocks at lesser prices, and selling them when the stock market plummets into a high. There is seemingly a profitable opportunity for energy currently. Amidst the chaos of the reducing energy stock prices, experts declare three oil companies, the stocks of which seem to be ripe for a current purchase.
The country of Argentina houses a government owned energy corporation - Yacimientos Petrolíferos Fiscales (YPF), that is involved in the production, transportation, and distribution of oil and gas. YPF stocks are also reportedly listed on the U.S. stock exchange, and the company has, so far, experienced a downfall of 1.08%. However, YPF has been offering more inviting terms to foreign investors and leading companies in a bid to enhance its shale reserves. Six months earlier, no investor would have probably considered investing in YPF, however, its current position in the stock market may possibly prompt investors to purchase its stocks. Besides, analysts state that this could even be a stepping stone toward the development of other corporations across the South American nation.
Texas based petroleum and natural gas company, Pioneer Natural Resources, headquartered in Irving, experienced a downfall of 1.73% in its stock prices recently. However, the company manufactures natural gas and oil at a lower break-even point than most of its counterparts. This is an indication that the Pioneer Natural Resources can still make profits, so long as crude oil is being sold at a rate of more than USD 40 per barrel. Besides, Pioneer seems to be heading toward a rational, practical business approach. The company has promised to avoid excess expenditure and retain its cash flow. Some funding is also being stored as a reserve for capital investments and debts that may curtail future profits.
A leading executive of the TIAA-CREF Large-Cap Growth fund has suggested IHS Markit to be a company that provides accurate exposure to the global energy industry. Based in London, UK, the corporation is a global leader in providing analytics and critical information and is apparently less vulnerable to the ups and downs of oil prices. IHS Markit recently experienced a decent upsurge of 0.90% in its stock prices, and is reportedly anticipated to uplift the dismally performing companies in the oil & gas market.
Experts have been advising that the energy and oil & gas market has potential business opportunities, despite the current stock market debacle. Taking into consideration the dismal performance of many other companies listed on the stock exchange, YPF, IHS Markit, and Pioneer Natural Resources seem to be the best oil stocks that may most likely prove to be a lucrative decision.