Top 10 Energy Stocks to Buy + One Winner

Mr. Oxy | Oil & Gas | Energy | WTI Crude | Brent Crude | Devon Energy | Occidental Petroleum | Marathon Oil | Marathon Petroleum | Conterra Energy | ConocoPhillips | Hess | Exxon | Valero | APA | DVN | OXY | MPC | MRO | CTRA | COP | XOM

Hey guys it’s mr roxy coming at you live from palm beach in florida it is monday september the 12th and what i was looking for this morning was uh energy buyers are there still some energy buys in the market today or have we scooped them all up and we’re sitting on two three four hundred percent gains and we don’t know what to do with our cash awaiting investment so

What i thought to do was spend a little bit of time and sort of see uh what the smart people are saying and then what we can make up uh in terms of deciding whether we want to invest in energy stocks or not so what i did was i went to bank rate so bankrate is a website that you can visit and ben gray told me that the best energy stocks as of september 2022 were

And these are the top 10 occidental petroleums i’m not going to talk about occidental petroleum because if you’ve been with us for the past couple of years you are literally sitting on a gain of 200 300 400 500 percent um so we’re going to skip oxia for this particular video but i do want to look at the um the rest of the top 10 stocks so here’s contero devon marathon

Exxon some of these stocks are obviously well known to many of you and um many of you are long in many of these stocks as well which is great because that means you’ve had a great return just look at these numbers over the last year performance year to date so since january for nine months you’re up um you know around 50 or more if you hold any of these stocks so

Uh let’s do a quick dive into each of these and i’m not going to spend too much time talking about each individual stock but it is a competition and at the end of the video i will tell you who my winner is for today and then after that you can shoot me down in flames because i didn’t pick your stock as the winner based on the top 10 as published by bankrade okay

Let’s go yes uh why don’t i like this because it’s got two red crosses here so this is your uh kind of immediate little uh signal that i might not be a big fan of his now despite the uh outstanding perform year to date is currently has a p e ratio of 25 i want to be at 15 or below as a general rule and it’s also trading at its 52-week high uh one thing to note

As i go through these stocks and i’m going to go quickly is that uh almost all of them have institutional ownership in the uh you know 70 80 percentile or thereabouts uh with the exception of one we’ll get to that one in just a minute so s for me is a no cantera energy so here’s a company i’ve never really paid too much attention to so uh let’s take a quick look

Here at this snapshot it’s not a small company it’s got a market cap of about 24 billion dollars positive earnings per share trading 12 months over the last um trading 12 months 3.57 the be ratio is only eight it’s kind of sitting just right of um the sort of midweek range on the 52-week range at about 30 bucks hit a high of 36 dollars a short while ago in um i

Think it was may or june uh institutional holding as i mentioned at the bottom here of the screen 93 um uh interesting uh stock that has been flying under the radar for me quantera how about devin this is a favorite for many people including yours truly i like devin i don’t have a positioning devin if i did not have a position in occidental petroleum right now

I’d probably be uh sitting on a mountain of devon energy um for a variety of different reasons why positive earnings per share 789 the e ratio of only 8.6 it’s super cheap and uh in addition to that as you know by now mr oxy likes dividends this one pays a dividend nearly seven percent currently paying 4.66 which based on the stock price of 70 is yielding almost

Seven percent not too much wrong with devon if you’re long in devin congratulations what a great pick marathon petroleum corporation now don’t get confused you’re between marathon and marathon because there’s another marathon kind of coming up soon in the uh in the top ten how about marathon petroleum so uh earnings per share 14a1 a be ratio of only 6.6 is super

Cheap and it pays a little dividend 2.32 which is currently yielding at the stock price of a hundred dollars surprise 2.32 um also just sitting right of its 52 week low high which was um about 114 uh not too much wrong with marathon petroleum either i don’t like exxon and the reason why i don’t like x1 is not because it’s a super major and not because um it’s

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A u.s stock it’s not because uh it’s a great performing stock if you’ve got money in exxon uh congratulations you chose well and uh you deserve your great return on your investment there’s not a lot wrong with exxon you know i’m going to come back to this one in just a second the earnings per share is only nine it’s super cheap so if you wanted to open a position

In exxon right now you can do so in fact it will have my my blessing or stamp of approval pays a nice dividend too especially for um people on fixed incomes or older people uh three dollars and 52 cents is currently yielding about 3.6 based on the stock price of 98 so why don’t i like exxon the primary reason why i don’t like exxon is because as one of the two

Leading um energy corporations in the united states one of the two the other one being chevron uh exxon will always be a target for activist investors and uh all these lunatic green fringe people target exxon on an ongoing basis and that’s also one of the reasons why you see the institutional ownership of exxon compared to all the others is relatively speaking

Only 56 percent you’re at the bottom in the middle of the screen compared to everybody else sort of at 70 80 and remember when we talk about institutional ownership we’re not talking about people like carl ican and warren buffett specifically we’re talking about the companies that pretty much own all the stocks of all corporations that are publicly traded in the

World in other words vanguard blackrock state street and some of the smaller phones dodge and cox ciscoanna etc those are the institutional investors who scoop of these funds so for me exxon is a no-go bolero looks very very interesting it’s actually a pretty good stock for many many different reasons so it’s earnings per share 1743 p e ratio of only six and a

Half it’s yielding uh on its dividend of 3.92 cents currently three and a half percent based on the stock price of 115 and uh it’s actually price sort of you know to buy so uh bolero is not bad if you want to pick up something lateral year and i’ll give this one my blessing or stamp of approval as well but let’s go on here’s the other marathon marathon oil mro

So marathon oil gets two check marks for me one for the earnings per share of 422 and the other one for its pe ratio of only six uh you know but these these are um so far almost every single stock uh is a good one to pick up except maybe for his and then the um the other one that i highlighted exxon you know it’s a bit touchy feeling in terms of um more activists

In uh related as opposed to uh investment fundamentals chronicle phillips another beautiful stock and i know a lot of you along in conoco phillips what a great pick this has been i don’t have a position in conoco um i have positions as you know by now and many energy stocks uh i could flip out any of my energy stocks like energy transfer inbreed or whatever for

Conical philips and i’d be just as happy bunnies per share 12 14 pe ratio of under nine and an annual dividend yield nice 4.44 cents which is currently yielding almost four percent at the stock price with um at the stock price currently trading at 115 institutional investment down here in the bottom 79 like all the others right the exception year has been exxon so

Far apa so um many of you will know this company perhaps from uh from before um anyway apa has been a favorite for many people as well for a long period of time um eps below nine uh so 89 pretty good uh the pe ratio is only four uh again it’s sitting just to the right of the 52-bit high which was 51.92 it’s got a long way to run from 40 to 52. uh not a lot wrong

With apa in fact um you could probably open a position in apa as well but let’s dive a little bit deeper so what i did here is i took my top five from the list of 10. you remember originally i excluded occidental petroleum so i was down to mine and then from those line i selected five so more than half of them anyway so i’m trying to be objective here because i’m

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Trying to look for a winner right so uh what i have here is i’ve grouped them on the left side you have three stocks that are you see at the bottom here it says oil us exploration and product and the other two oil refining and marketing because oil when you refine a market is not the same as exploration product right so um these companies are different so if you

Wanted to you could potentially pick up one of each of these and and diversify your energy holdings a little so you pick one from the left side and one from the right side and you have a little bit of diversification in your energy portfolio so the uh the three that are sort of my um my uh winners because this is my shortlist here contara energy devon energy and

Apa um i’m not going to dwell on this one the uh the two refining and marketing companies of valero and petroleum so now i have to whittle these down to um one or two to get to a winner so uh first thing i did here was i compared them so from a technicals point of view cantera energy and um marathon basically kind of wins the uh the battle but remember i don’t

Look at the technicals um in exclusivity or or exclusively i i look for a whole variety of different things when i decide where i want to park some of my cash awaiting investment so we’re just having some fun here and uh at the end of the day you can educate me as to whether you think i’m going down the wrong pathway or the right one uh if we look at the technicals

There’s not a lot to choose here from a weighted alpha point of view the outlier is devin so what i’m going to do is based purely on the technicals here i’m going to say i’m going to move devin aside and focus on cantera energy so today’s opinion by the way is almost 90 of buy and then i flip right over to the other side and i’m on marathon and between valero and

Marathon if we look at the technicals as well which means i’m looking at the 20-day rule stochastic and at the weighted alpha of these particular stocks there’s nothing to choose a year from a weighted alpha point of view so i’m going with the analyst analyst recommendation of 88 buy on cantera energy in valero so now i’m down to two right at the bottom you can

See the performance both of them have been doing okay as energy pulled back which impacted all of them the one that pulled back the lease till the last three months was devin but if you look at it over a six month period 20 20 there’s an outlier there apa are up only three percent and we’ve got 26 and 28 so not a lot to choose there sort of the um the two on the

Left side sort of uh in the 20 range and the two on the right hand side in the 26 28 range not a lot to choose from but now i’m down to two right condera and marathon so now i do one level dive deeper and you know you will know by now if you’ve been following my my videos that um i always look at debt uh i’m not uh overly concerned with that if companies are using

Leverage in order to make more money that’s okay if they’re carrying too much debt on the balance sheet they need to do balance sheet repair as we’ve seen with most of the energy companies as the prices have been high over the last year they’ve all been very efficient at cutting the operating costs paying down in debt uh returning money to shareholders through

Share buybacks and special dividends and things like that so um now i’m going one level deep deeper and i’m looking here at canteras and um the picture is good uh they’ve actually been um if you look at their debt to um capital ratio it’s only 20 the industry is at around 35. if you look at the change in debt that’s positive two uh they’ve been reducing their

Debt quarter over quarter a quick ratio of 1.77 and we look at this um interest coverage 77 so they get a green check mark from me on a whole variety of uh of different parameters right they’ve got a great pe they’ve had good earnings per share they don’t have a lot of debt they’ve been reducing their debt the quick ratio means that they have significantly more

Almost two times more cash on hand than what they have current liabilities that’s a great position to be in and in addition to that they have an interest coverage for the most recent quarter of almost 80 which is phenomenal right so they’ll have absolutely no problem repaying their debt in fact it will be really really easy about marathon so marathon unfortunately

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Is going to get knocked out here because marathons total debt to capital ratio has actually been increasing and in addition to that it is higher in the industry average their change in debt you can see a quarter over quarter it’s actually um well in reality it hasn’t gone up a bit it hasn’t moved much and uh that’s a terrible position to be in because when the

Prices have commodity that you’re trading in is so high you should have been able to uh knock a dent in the debt um and maybe uh done some refinancing with your long-term bonds and things like that and they didn’t seem to do a very efficient job at doing that don’t get me wrong marathon and marathon marathon oil and marathon petroleum they are great companies so

Uh this is a competition and as i said i’m just having fun but i’m looking for a winner so the quick ratio for marathon is 1.1 so they have just slightly more cash than what they have current liabilities but you can see that their interest coverage is pretty good at 29.5 so nowhere near as good as conderos but uh still a very solid investment if you want to be

Long in marathon so today’s winner is cantera energy so i have not covered cantera energy ever before not that i can recall anyway in fact it’s a company that is even uh i’d say relatively new to me because it’s the first time i’ve actually done a little bit of a dive into their financials and into the company to see sort of what the debt looks like and take a

Snapshot on the company and break it down into bite-sized chunks you can see the chart doesn’t look too bad a year to date obviously has been performing quite nicely it’s at 56 percent like most of the energy companies it’s pulled back over the last couple of months or so they had a high hero of about 35 bucks in um uh 36 dollars in uh june around about mid-june

Or so when it uh reported most recently as of the end of june 2022 it reported revenue of 2.56 billion for the quarter which is about 520 year over year now of course that’s a ridiculous number but don’t forget this is applicable to almost all energy companies they all did significantly better um sort of not only year over year but even quarter of a quarter because

Of the high prices of the commodity that they are dealing in uh great numbers net income 1.23 billion dollars of almost four thousand percent diluted earnings per share buck 52 up 1800 percent net profit margin near nearly 50. that was up 560 a uh comfortably beat the earnings per share expectations at almost six percent and they beat the revenue expectation 16

Percent what do you guys think have you heard of cantera energy before are you familiar with uh with the company are you long if you are that’d be interesting tell us why with the uh compelling um reason is why you went long on contreras to begin with and maybe you’re at your investment narrative or thesis for staying long in contreras cantera energy so um guys as

I said i’m just having some fun here uh those are the top 10 of the top 10 ironically i only have a position in one of them which is obviously occidental petroleum um it would be extraordinary for mr oxy do not have occidental petroleum in my portfolio um my cost bases on accidental is about 12 bucks 15 11 12.52 or so so that position for me is uh you know is is

Something i can hold now i’ve taken some profit along the way uh i’m comfortable with where i met but for occidental so i’ll just hold it in my portfolio and look for something else to buy which is what i was doing with this video because i was exploring the other nine stocks that i don’t own if you want to go safety first maybe uh your choices would be like an exxon

Maybe uh conical philips or something like that marathon’s a good buy uh devin is a fantastic stock at the end of the day to be fair all 10 of these stocks are just absolutely excellent uh investments to hold long in your portfolio right now but my winner for today is cantera energy let me know what you think in the comments i look forward to uh interacting with you bye for now bye

Transcribed from video
Top 10 Energy Stocks to Buy + One Winner By BesterInvestor