Connect with us

Business

The “best country in the world” plans to ban electric cars amid the energy crisis. Is it time to reconsider oil stocks? Here are 3 great plays

Published

on

Winter is coming: the best country in the world plans to ban electric cars amid the energy crisis. Is it time to reconsider oil stocks? Here are 3 great plays

Electric cars have become popular over the past few years. But electric cars could take a big hit depending on what happens in Switzerland.

According to a report in The Telegraph on Saturday, the country is considering emergency measures in the event of an electricity supply shortage this winter.

Advertisement

Switzerland — the best country in the world according to a recent analysis from US News & World Report — could shorten shop hours, lower thermostats in buildings, and limit private use of electric cars to “absolutely necessary trips.”

These proposed measures have not yet been passed into law. But it does serve as a reminder that electricity doesn’t magically appear in every wall socket — and that electric vehicles don’t run on fairy dust.

Despite the growing focus on ESG investment, traditional energy is not dead. The SPDR Energy Sector Selection Fund (XLE) — which provides exposure to oil and gas companies — is actually up 52% ​​year-to-date.

Moreover, Wall Street is seeing more upside in the very few companies involved in hydrocarbon exploration. Here is a look at three of them.

do not miss

coincidence

Headquartered in London, Shell (NYSE: SHEL) is a multinational energy giant with operations in more than 70 countries. It produces about 3.2 barrels of oil equivalent per day, has interest in 10 refineries, and sold 64.2 million tons of LNG last year.

Advertisement

It’s a staple for global investors, too. Shell is listed on the London Stock Exchange, Euronext Amsterdam, and the New York Stock Exchange.

Shares of the NYSE-listed company are up 28% since the start of the year.

Piper Sandler analyst Ryan Todd sees opportunity in the oil and gas giant. Last month, the analyst reiterated Shell’s “overweight” rating while raising its price target from $65 to $71.

Given that Shell is trading at about $57 a share today, Todd’s new price target suggests a potential upside of 25%.

Advertisement

chevron

Chevron (NYSE: CVX) is another major oil and gas company benefiting from the commodity boom.

For the third quarter, the company reported earnings of $11.2 billion, which is an 84% increase over the same period last year. Sales and other operating income totaled $64 billion for the quarter, up 49% year over year.

Read more: Rich young Americans have lost faith in the stock market – and are betting on these assets instead. Join now for a strong long term tailwind

In January, Chevron’s board of directors approved a 6% increase in its quarterly dividend rate, to $1.42 per share. This gives the company an annual dividend yield of 3.2%.

The stock has had a nice rally as well, up 46% in 2022.

Advertisement

Morgan Stanley analyst Devin McDermott has an “equal weight” rating for Chevron (not the most bullish rating) but raised the price target from $193 to $196 in October. This indicates a potential upside of 12% from current levels.

Exxon Mobil

Exxon Mobil (NYSE:XOM), with a market capitalization of more than $430 billion, is larger than Shell and Chevron.

The company also boasts the strongest share price performance of the three companies in 2022 – Exxon shares are up 67% year-to-date.

It’s not hard to see why investors like the stock: The oil-producing giant is raking in earnings and cash flow in this commodity price environment. In the first nine months of 2022, Exxon generated $43.0 billion in profits, a huge increase from $14.2 billion in the same period last year. Free cash flow totaled $49.8 billion in the first nine months, compared to $22.9 billion in the same period last year.

Strong financial statements allow the company to return cash back to investors. Exxon pays a quarterly dividend of 91 cents per share, which translates to an annualized yield of 3.4%.

Advertisement

Jefferies analyst Lloyd Byrne has a “buy” rating on Exxon and a price target of $133 — about 25% above where the stock is today.

What do you read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Source link

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Business

MicroStrategy is at its lowest level since 2020 after the sales were revealed

Published

on

By

(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

Most Read from Bloomberg

The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

Advertisement

In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

Advertisement

MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

Most Read by Bloomberg Businessweek

© Bloomberg LP 2022

Advertisement

Source link

Continue Reading

Business

Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

Published

on

By



Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.