One of the biggest repercussions from the ongoing Russian invasion of Ukraine is that inflation is spinning out of control. Energy prices, in particular, have skyrocketed recently. Since the start of the year, gasoline prices have risen above $4.00 per gallon in most of the United States and more than $5.00 per gallon on the West Coast.
As a result, energy stocks have been on fire this year. The Energy Select Sector SPDR ETF (NYSEARCA:XLE), which tracks energy stocks, is up about 40% year-to-date (YTD). In comparison, the S&P 500 and Dow Jones Industrial Average are both down more than 4% so far this year.
I don’t expect the energy sector to slow anytime soon, given that inflation is likely to persist for the foreseeable future. Now, I track many energy stocks with my proprietary stock-scoring system, and given the strength in energy stocks, many are showing up on my screens — regardless of their size.
Case in point: Exxon Mobil Corporation (NYSE:XOM) and Viper Energy Partners LP (NASDAQ:VNOM). XOM boasts about a $356 billion market cap, while VNOM has a $5 billion market cap.
Now, Exxon needs little introduction; if you have a car, you’ve likely gone to an Exxon gas station to fill up your tank. As the largest direct descendant of John D. Rockefeller’s Standard Oil, Exxon’s roots date back to 1870.
Viper Energy Partners, on the other hand, was founded in 2013. It’s a limited partnership focused on acquiring oil and natural gas properties in North America. Viper holds oil and natural gas interests that cover more than 27,000 net royalty acres in the Permian Basin and Eagle Ford Shale.
Both companies posted strong results in their most recent quarters, and that strength is expected to continue into their first quarters in fiscal year 2022. Specifically, XOM is expected to post earnings of $2.11 per share on revenue of $93.09 billion, up from earnings of $0.65 per share on revenue of $54.6 billion in revenue in the same quarter of last year.
VNOM is forecast to report earnings of $0.39 per share on revenue of $159.69 million, up from an earnings loss of $0.08 per share on revenue of $82.09 million in the same quarter of last year.
As you can see in the Report Card below, both companies earn an A-rating from my stock-grading system. They also hold an A-rating for their Quantum Scores.
In my Prediction 2022 event, scheduled for Tuesday, April 5, at 4 p.m. Eastern time, I’ll talk in great detail about the Quantum Scores. It’s a key factor in my Total Grade and determines whether I’m going to recommend the stock. If you’re interested, please click here now to reserve your spot.
Of course, that’s not all I’ll be discussing during my Prediction 2022 event. We’ll also cover…
- A certain type of investment I urge you to buy immediately…
- The #1 stock to buy now…
- A stock poised to crash…
- And how you can position yourself for six money-doubling opportunities in the next 12 months.
I’ll give you a hint on the #1 stock to buy now: It’s an energy stock that also earns top marks in my stock-grading system and offers tremendous upside potential — even more than XOM or VNOM do.
I’ll share all the details during my Prediction 2022 event on Tuesday, April 5, at 4 p.m. Eastern time. Please don’t forget to reserve your spot. Simply click here to sign up.
P.S. Once you sign up, I’ll send you my brand-new report 13 Stocks to Sell Immediately — it’s yours, absolutely free. I share 13 stocks that are “rocks” and should be considered immediate sells. Some of these are blue-chip stocks we’ve all heard of, while others are less well-known but popular pandemic stocks. If you own any of these 13 stocks, you’ll want to sell them now. Sign up now to receive your free report.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
