Crude oil prices are blitzing higher on Monday, with West Texas Intermediate pushing towards the $70-a-barrel level, after the President Donald Trump Administration announced the United States is ending sanction wavers on Iranian oil imports in early May. With the start of the summer driving season nearly upon us, the energy bulls are wasting no time bidding up key stocks in the space on supply concerns.
Of course, this could create a number of macroeconomic problems down the road. Higher at-the-pump prices will pinch consumer spending power. It will bolster inflation measures. And it could well result in the end of the Federal Reserve’s recent dovish tilt.
But for now, higher prices means more revenue for oil and gas stocks. Here are four on the move:
Exxon Mobil (XOM)
Exxon Mobil (NYSE:XOM) shares are testing the upper end of a two-month consolidation range bounded by the upper reaches of the sideways channel seen late last year. A breakout here would put the September high near $85 in play, which would be worth a gain of nearly 4% from here.
The all-time high of $88 set in 2014 belies that fact the stock has been drifting sideways for nearly five years, since oil prices peaked and the Saudis unleashed their price war against U.S.-based shale producers. The company will next report results on April 26 before the bell. Analysts are looking for earnings of 74 cents per share on revenues of $67.4 billion. When the company last reported on Feb. 1, earnings of $1.41 beat earnings by 33 cents on an 8.1% rise in revenues.
Chevron (NYSE:CVX) is benefiting from a recent ruling by the Dutch Supreme Court in its fight against a lawsuit from the Republic of Ecuador for fraud and corruption. Watch for shares to move back above their 50-day moving average and break up and out of a three-year long sideways pattern.
The company will next report results on April 26 before the bell. Analysts are looking for earnings of $1.31 per share on revenues of $37.4 billion. When the company last reported on Feb. 1, earnings of $1.95 beat estimates by six cents on a 12.6% rise in revenues.
Hess (NYSE:HES) shares are extending higher on Monday, pushing further away from their golden cross as the 50-day average rallies above the 200-day average. Watch for a move to the prior high near $73, which would be worth a gain of nearly 10% from here. The strength comes despite a recent downgrade by MKM Partners analysts, who are still looking for a $71 price target.
The company will next report results on April 25 before the bell. Analysts are looking for a loss of 27 cents per share on revenues of $1.4 billion. When the company last reported on Jan. 30, a loss of 31 cents per share beat estimates by seven cents on a 30.3% rise in revenues.
Marathon Oil (MRO)
Shares of Marathon Oil (NYSE:MRO) are perking up and over their 200-day moving average, exiting a downtrend pattern that has been in place since October. Already up roughly 50% from the low set in late December, watch for a run at the prior high near $24, which would be worth another 30% move from here.
The company will next report results on May 1 after the close. Analysts are looking for earnings of seven cents per share on revenues of $1.3 billion. When the company last reported on Feb. 13, earnings of 15 cents per share beat estimates by a penny on a 27.7% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.