10 Small-Cap Oil & Gas Stocks to Watch

These small caps in the oil and gas space are climbing higher as crude prices stabilize

By Anthony Mirhaydari, InvestorPlace Market Strategist

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U.S. equities are drifting lower on Thursday as investors worry about the impact from the accelerating uptrend in U.S. Treasury bond yields. The first-quarter earnings season wrapped up as well, with Wal-Mart (NYSE:WMT) reporting better-than-expected results.

But eclipsing all of that is the fact Brent crude has hit $80-a-barrel in overnight trading as a combination of geopolitical concerns, rising demand and tight inventories are sending energy prices soaring.

Oil and gas stocks are bolting higher in response, pushing the iShares Energy Select SPDR (ETF) (NYSEARCA:XLE) above its January high to levels not seen since late 2014.

A number of smaller, faster-moving stocks in the sector are perking up in a big way.

Here are 10 that are perking up for investors to buy before the rally really begins:

Small Oil & Gas Stocks: EOG Resources (EOG) 

EOG Resources (NYSE:EOG) shares have pushed above their 2014 highs to set a new record, up more than 50% from the lows set last summer.

Now, buying in EOG stock has intensified in recent days thanks to an upgrade from analysts at Bank of America Merrill Lynch a management’s upbeat assessment of full-year oil production.

The company will next report results on Aug. 1 after the close. Analysts are looking for earnings of $1.14 per share on revenues of $3.8 billion.

When the company last reported on May 3, earnings of $1.19 per share beat estimates by 19 cents on a 41% rise in revenues.

Small Oil & Gas Stocks: Pioneer Natural Resources (PXD)

Pioneer Natural Resources (NYSE:PXD) shares have broken clear of a strong resistance band near prior highs, pushing up and over the $200-a-share threshold.

That returns prices to levels last seen in the summer of 2014. From the lows seen last summer, prices are up more than 60%.

The company will next report results on Aug. 1 after the close. Analysts are looking for earnings of $1.53 per share on revenues of $1.7 billion.

The company last reported on May 2 when earnings of $1.66 per share beat estimates by 16 cents on a 56.5% rise in revenues.

Small Oil & Gas Stocks: Hess Corp (HES)

Hess Corp (NYSE:HES) shares have been rallying powerfully out of the lows set earlier this year, up more than 60%. Prices have returned to levels not seen since 2015, clearing three years of overhead resistance.

Production is rising in its Bakken presence, encouraging management with plans for cash returns to shareholders the year.

The company will next report results on July 25 before the bell. Analysts are looking for a loss of 30 cents per share on revenues of $1.4 billion. When the company last reported on April 25, a loss of 27 cents per share beat estimates by 23 cents on a 10.8% rise in revenues.

Small Oil & Gas Stocks: Devon Energy (DVN)

Devon Energy (NYSE:DVN) shares are up more than 40% from their April lows and look ready for a breakout as prices contend with overhead resistance from the highs seen in January and in late 2016.

Management recently raised their 2018 production guidance and announced a target asset divestiture of around $5 billion.

Their company will next report results on July 31 after the close. Analysts are looking for earnings of 33 cents per share on revenues of $3.9 billion. When the company last reported on May 1, earnings of 20 cents per share missed estimates by a penny on a 7.3% rise in revenues.

Small Oil & Gas Stocks: Marathon Oil (MRO)

Marathon Oil (NYSE:MRO) shares are up more than 40% from their March lows, pushing deeper into levels last seen in 2015. Management is tagging resource oil play growth of around 30% now, up from 20% to 25% previously.

Back in March analysts at JPMorgan upgraded shares to overweight or “buy” from neutral.

The company will next report results on Aug. 1 after the close. Analysts are looking for earnings of 17 cents per share on revenues of $1.4 billion. When the company last reported on May 2, earnings of 18 cents per share beat estimates by five cents on a 61.7% rise in revenues.

Small Oil & Gas Stocks: Newfield Exploration (NFX)

Newfield Exploration (NYSE:NFX) shares are under more pressure than the other names here, despite being up some 30% from their March low. Shares remain well below the highs reached in January and in late 2016 (down 40% from that number).

But with support from the December lows near $28 back in play, downside risk looks contained.

The company will next report results on July 31 after the close. Analysts are looking for earnings of 75 cents per share on revenues of $585 million. When the company last reported on May 1, earnings of 82 cents beat estimates by eight cents on a 39.1% rise in revenues.

Small Oil & Gas Stocks: Halliburton (HAL)

Haliburton (NYSE:HAL) shares look ready to push up and out of a consolidation range going back to late 2016, with overhead resistance near The $58-a-share threshold. Analysts are Bank of America Merrill Lynch recently upgraded the stock to Buy as U.S. production activity ramps up.

The company will next report results on July 23 before the bell. Analysts are looking for earnings of 58 cents per share on revenues of $6.1 billion. When the company last reported on April 23, earnings of 41 cents per share beat estimates by a penny on a 34.1% rise in revenues.

Small Oil & Gas Stocks: Valero Energy (VLO)

Valero Energy (NYSE:VLO) shares have doubled from the lows set last summer, and have gained nearly 50% from the lows hit in February, to set new record highs thanks to growing demand for U.S. refinery capacity. Analysts at Morgan Stanley recently upgraded the stock to “Buy” from neutral.

The company will next report results on July 26 before the bell. Analysts are looking for earnings of $2.19 per share on revenues of $26.5 billion.

When the company last reported on April 26, earnings of $1.00 per share beat estimates by seven cents on a 21.4% rise in revenues.

Small Oil & Gas Stocks: Marathon Petroleum (MPC)

Marathon Petroleum (NYSE:MPC) shares keep pushing to new records, up one than 160% from the lows seen in February 2016 as oil prices touched $25-a-barrel.

Last week, shares were upgraded by analysts at Bank of America Merrill Lynch. And earlier in the month, analysts at Jefferies issued an upgrade.

The company will next report results on July 26 before the bell. Analysts are looking for earnings of $1.84 per share on revenues of $20.9 billion. When the company last reported on April 30, earnings of eight cents per share missed estimates by 10 cents on a 15.8% rise in revenues.

Small Oil & Gas Stocks: Philips 66 (PSX)

Phillips 66 (NYSE:PSX) shares have been on a near-vertical trajectory over the last two months, rising from a loss of $88 to more than $122 now, a gain of nearly 40% to a new record high.

The company is at the center of the pipeline infrastructure bottleneck in play here in the United States, which explains why its share price rally has been so aggressive. Credit Suisse analysts resumed coverage back in March with a $110 price target which has since been taken out.

The company will next report results on Aug. 3 before the bell. Analysts are looking for earnings of $2.23 per share on revenues of $30.8 billion. When the company last reported on April 27, earnings of $1.04 beat estimates by 15 cents on $31.5 billion in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/10-hottest-small-oil-and-gas-stocks/.

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