Best Energy Stocks To Watch Right Now
Energy stocks have been gathering momentum again recently. As energy prices surged this month, energy stocks have enjoyed strong gains. Rising prices for crude oil over the last 3 months have given a boost to some of the top energy stocks so far. This on top of investors being hopeful on the global vaccine rollouts would speed up the economic recovery this year. This can be seen in how countries like the UK have vaccinated the most vulnerable sections of their population so quickly.
What To Look For In Top Energy Stocks?
I believe that energy demands will no doubt increase as economies reopen and businesses restart. These energy stocks will also be on the rise in line with this demand increase. With over 7.8 billion people living on Earth and this number is expected to grow for the decades to come, it is feasible to say that energy demands will continue increasing to facilitate this growing population.
Energy will always be needed to power up homes and businesses. Even our everyday devices and gadgets require energy, so you can see how much energy is required. With energy stocks like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) rising steadily since the start of February, things do begin to look optimistic. With that in mind, here is a list of top energy stocks to consider buying this week.
Top Energy Stocks To Buy [Or Sell] This Week
- SolarEdge Technologies Inc. (NASDAQ: SEDG)
- Occidental Petroleum Corporation (NYSE: OXY)
- SunPower Corporation (NASDAQ: SPWR)
SolarEdge Technologies Inc.
SolarEdge is a leader in intelligent inverter solutions. Its technology changes how energy is harvested and managed in a solar photovoltaic (PV) system. The company’s optimized inverter system maximizes power generation at the individual PV module-level while lowering the cost of energy produced by the entire solar PV system. The company is based in Israel and has offices all over the world. SEDG stock has been up by over 200% in the last year. Last week, SolarEdge announced its fourth-quarter earnings and full-year 2020 fiscals. Here’s how they did.
Based on its fourth-quarter the company reported a revenue of $358.1 million, a 6% increase from the previous quarter. A substantial portion of this revenue ($327.1 million) is coming from its solar products. This beat Wall Street estimates by $2.65 million. On top of that, it reported a net income of net diluted earnings per share of $0.33 for the quarter.
“Our fourth quarter results are reflective of strength in the U.S. residential market and record revenues from outside of Europe and the U.S., led by Australia,” stated Zvi Lando, CEO of SolarEdge. He continued with, “The return to growth in installations in the U.S. residential market drove our sequential growth and return to the anticipated solar margins. Despite the global pandemic, we concluded the year with slight growth in revenues, healthy cash generation and are well positioned for 2021 and beyond.” With solid financials, will you consider buying SEDG stock?
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Occidental Petroleum Corporation
Occidental is an international energy company with operations in the U.S., Middle East, Africa, and Latin America. In detail, it is one of the largest oil producers in the U.S. Its midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. The company also has a chemical subsidiary called OxyChem and manufactures the building blocks for life-enhancing products. OXY stock is currently trading at $24.52 as of Friday’s close and is up by over 45% year-to-date. Also, the company will announce its fourth-quarter financials this week, Tuesday, February 23rd at 1 pm EST. This was a reschedule due to the impacts of the severe winter storms happening in the U.S.
In the company’s third-quarter financials, Occidental exceeded its global production guidance and continued to deliver operational excellence. For the quarter, it had a production capacity of 1,237 thousand barrels of crude oil equivalent per day from continuing operations. Despite posting a net loss for the quarter due to the pandemic, it managed to improve its operating cash flow for the quarter.
Occidental has also achieved its highest quarterly free cash flow since 2011, driven by a strong performance of its business. All things considered, will you add OXY stock to your portfolio?
[Read More] 4 Top Industrial Stocks To Watch In February
SunPower is an energy company that designs and manufactures PV cells and solar panels. It delivers one of the highest efficiency and reliability solar panels and systems that are available in the market today. Its share price has risen by over 650% in the last year alone and currently trades at $37.76 as of Friday’s close. SPWR stock dropped from trading in the $50 dollar range after the company reported its fourth-quarter financials last week Wednesday.
SunPower reported quarterly highlights such as a 65% increase in commercial and industrial installations compared to the previous quarter. However, if you take a deeper look you’ll see the company reported a 15% decreases in revenue year-over-year (YoY). On top of that, SPWR stock also saw a 40% drop in earnings per share YoY. Being that there such strong expectations surrounding SunPower due to its bullish share price movement in the last year, it’s no surprise that investors may have been disappointed with the results. They also narrowed their revenue guidance for 2021 anticipating growth of 35% after previously estimating between 30% and 50%.
Furthermore, in late January, the company expanded its SunPower Residential Installation (SPRI) program to six states. In detail, SPRI will enable local companies and entrepreneurs to create or expand their solar energy companies without the complex and asset-heavy roles often associated with a traditional solar dealer business. It will allow sales organizations and small businesses to focus on marketing and selling solar while SunPower manages the entire process of rooftop installation and maintenance. It essentially lowers the barrier-to-entry for companies that want to enter the fast-growing renewable energy sector. This could likely expand SunPower’s customer base as organizations that work with SPRI are part of its Non-Installing Dealer network. Given the recent drop in share price and an optimistic outlook for renewable energy stocks, would you consider buying SPWR stock?