The demand for oil and other products that the integrated giants produce will continue to skyrocket. After a giant run over the past year, investors finally are getting a chance to step in and grab some of the best companies in the industry.
Spot prices for both Brent and West Texas Intermediate crude have dropped dramatically from the recent highs, and absurd attempts to lower the price at the pump by initiating a three-month moratorium on the federal gas tax, as well as lecturing from the White House and the Energy Secretary on how the companies are “greedy,” have helped to chop the industry giants down even more.
We screened our 24/7 Wall St. energy database looking for value in the mega-cap integrated energy and refining giants and found eight top stocks that have backed up in price and are very enticing buys now for growth and income investors. All pay reliable (in some cases outsized) dividends. All are rated Buy at many major firms across Wall Street and can be bought in front of upcoming dividend ex-dates.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
BP
This is one of the premier European integrated oil giants and the Goldman Sachs analysts are very positive on the shares. BP PLC (NYSE: BP) engages in the energy business worldwide. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to wholesale and retail customers, convenience products, aviation fuels, and Castrol lubricants. It is involved in refining, supply and trading of oil products, as well as operation of electric vehicle charging facilities. In addition, it produces and refines oil and gas, and it invests in upstream, downstream and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation and power and storage areas.
Shareholders receive a 4.72% yield. The Goldman Sachs price target for domestic shares of BP stock is $45. That compares with the $38.14 consensus target and the closing price of $27.36 a share on Thursday.
Chevron
This integrated giant is a safer way for investors looking to get positioned in the energy sector, as it has a solid position when it comes to natural gas. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide.
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