With a surge in demand driven by the global economic recovery, energy prices in the S&P Goldman Sachs Commodity Index (GSCI) ended 2021 59% higher than the first trading day of the year. According to the Winter Fuels Outlook 2021 from the U.S. Energy Information Administration, nearly half of…
households that heat with natural gas are projected to spend 30% more than they did last winter on average.
While governments worldwide have undertaken various steps to transition to a renewable-energy-driven sustainable future, crude oil and natural gas companies continue to witness increasing demand. Furthermore, according to the International Energy Agency, the coal demand could reach an all-time high in 2022 due to the rebound in the global economy.
Given this backdrop, we think it could be worth adding shares of energy stocks Hess Corporation (HES – Get Rating) and Coterra Energy Inc. (CTRA – Get Rating) to one’s watchlist because Wall Street analysts expect these stocks to rally by more than 40% in price in the near term.
Incorporated in 1920, New York City-based HES is a global independent energy company that explores for crude oil and natural gas. The company operates through two segments, Exploration and Production; and Marketing and Refining. HES’ segments offer crude oil, NGLs, and natural gas. As of Dec. 31, 2020, the company had total proved reserves of 1,077 million barrels of oil equivalent.
For the third quarter, ended Sept. 30, 2021, HES’ net income came in at $115 million, compared to a $243 million net loss in the prior-year quarter. The company’s EPS amounted to $0.37, compared to an$0.8 loss per share in the third quarter of 2020.
Analysts expect HES’ revenue to increase 16.8% year-over-year to $7.73 billion in its fiscal 2022. The company has an impressive earnings surprise history; it beat the consensus EPS in each of the trailing four quarters. Its EPS is estimated to grow 168.6% in fiscal 2021 and 132.8% in fiscal 2022. HES has gained 45.5% in price over the past year.
Closing the last trading session at $76.79, the $107.58 average analyst price target represents a 40.1% potential upside.
CTRA is a Houston, Tex.-based diversified energy company that explores for, exploits, develops, produces, and markets oil and gas properties in the United States. The company’s portfolio includes Permian Basin, Marcellus Shale, and Anadarko Basin. CTRA sells its…
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