Global equities took a breather on Tuesday as crude oil slipped lower despite OPEC plus Russia confirming a deal to continue oil production cuts at their meeting. West Texas Intermediate Crude has been battling with the confluence of its 50-day and 200-day moving averages, struggling to push definitively above the $60-a-barrel level.
Also working against risk assets was President Donald Trump’s fresh trade swipe at Europe, just as tensions with China are calming. European factory activity is already quite weak, so this is raising fears a protracted standoff could well send the Eurozone into recession.
Recessions, of course, are no good for energy demand. Here are four major oil and gas stocks to sell now ahead of a possible pullback:
Oil Stocks to Sell: Exxon Mobil (XOM)
Shares of Exxon Mobil (NYSE:XOM) are rolling down out of multimonth resistance near $78 to drop back below its 50-day and 200-day moving averages. This coincides with the May trading range and risks a return to the late-May lows, which would be worth a loss of roughly 8% from here.
The company will next report results on Aug. 2 before the bell. Analysts are looking for earnings of 97 cents per share on revenues of $69.6 billion. When the company last reported on April 26, earnings of 55 cents per share missed estimates by 19 cents on a 6.7% decline in revenues.
Chevron (NYSE:CVX) shares are dropping away from the prior highs hit in March and April, setting the stage for a test of the April-May lows near $114, which would be worth a loss of roughly 7% from here. The company recently backed away from a competing offer for Anadarko (NYSE:APC) after Occidental (NYSE:OXY) made a highly motivated offer.
The company will next report results on Aug. 2 before the bell. Analysts are looking for earnings of $1.98 per share on revenues of $41.2 billion. When the company last reported on April 26, earnings of $1.39 beat estimates by nine cents per share on a 6.8% decline in revenues.
EOG Resources (EOG)
EOG Resources (NYSE:EOG) shares are dropping back below their 50-day moving average and were unable to break above the 200-day moving average that has contained the upside since last October. The company was recently upgraded from neutral to buy by analysts at Goldman Sachs (NYSE:GS), just in time for what looks like a retest of the early June lows.
The company will next report results on Aug. 1 after the close. Analysts are looking for earnings of $1.39 per share on revenues of $4.5 billion. When the company last reported on May 2, earnings of $1.19 per share beat estimates by 16 cents on a 10.3% rise in revenues.
Shares of ConocoPhillips (NYSE:COP) are bonking into resistance from the mid-May highs. This continues a downtrend that has been in place since February and sets the stage for a drop back to its December lows near $56. That would be worth a loss of roughly 8% from here. Shares were recently upgraded by Mizuho analysts. They gave it a “buy” rating with an $80 price target.
The company will next report results on July 30 before the bell. Analysts are looking for earnings of $1.09 per share on revenues of $9.7 billion. When the company last reported on April 30, earnings of $1 per share beat estimates by 10 cents on more than $9 billion in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.