U.S. equities remain range-bound on Tuesday as investors remain preoccupied with the shifting odds of a policy push on taxes and healthcare by President Trump and await the release of the latest Federal Reserve meeting minutes on Wednesday. We also have the jobs report on Friday.
So things are in a holding pattern.
But if you know where to look, there is some movement just below the surface of tranquility. Thanks to the two-week rebound in crude oil, key energy stocks are on the move. Fresh jawboning from OPEC — concerning a possible extension of the production freeze agreement signed late last year — has pushed West Texas Intermediate back over the $50-a-barrel threshold. The fact that inventory is still swollen and that U.S. shale production is ramping up doesn’t seem to matter right now.
As a result, a number of energy stocks in the sector look ready to make a turnaround. Here are three to watch.
Energy Stocks to Buy: Exxon Mobil Corporation (XOM)
Exxon Mobil Corporation (NYSE:XOM) shares look ready for a breakout above the 50-day moving average, building a solid base of support near the $81-a-share level for the last three months. The $81-level was also held in September and again in November. And it bolstered shares multiple times in 2014 (February, October and December) and in January 2015 as well.
The company is next expected to report results on April 28 before the bell. Analysts are looking for earnings of 96 cents per share on revenues of $71.9 billion. Edge Pro subscribers are preparing for a move higher with a position in the April $83 XOM calls.
Energy Stocks to Buy: Cabot Oil & Gas Corporation (COG)
Cabot Oil & Gas Corporation (NYSE:COG) shares are pushing above their 200-day moving average and up and over resistance that has constrained shares for the last six months. Watch for a run in COG at the 200-week moving average, last touched in the summer of 2015, which would be worth a near-20% gain from here.
Cabot will next report results on May 26 before the bell. Analysts are looking for earnings of 17 cents per share on revenues of $483 million. Coverage on COG stock was re-initiated by Stifel on Mar. 23 with a Buy rating and a $30 price target.
Energy Stocks to Buy: BP plc (ADR) (BP)
BP plc (ADR) (NYSE:BP) shares are perking up, ready to exit a three-month uptrend channel and extending above their 50-day moving average. This looks like a continuation of the uptrend that started in early 2016 and has pushed BP shares up nearly 40% since early 2016. Watch for a run at the January high, which would be worth a gain of more than 10% from here.
The company will next report results on May 9 before the bell. Analysts are looking for earnings of 38 cents per share on revenues of $53.4 billion. BP shares were upgraded by analysts at Deutsche Bank on Tuesday, from hold to buy.
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.