Most Important Energy Stocks for October 2020

With the suspension of air traffic and transportation due to the Covid-19 pandemic the demand for refined petroleum products has been reduced driving oil prices to record lows in April and a sharply push-down in energy stocks, the first of its kind in decades. But what is the energy sector and what kind of stocks does it include? The energy sector is comprised of companies focused on the exploration, production, and marketing of oil, gas, and renewable resources around the world. Which means it includes stocks that are primarily engaged in the exploration of oil or gas reserves. Devon Energy Corp. (DVN) and Concho Resources Inc. (CXO). are seen as well-known companies in the energy sector. While Downstream companies include HollyFrontier Corp. (HFC), which refines and processes oil and gas products for delivery to consumers. However, energy stocks are represented by the Energy Select Sector SPDR ETF (XLE) which is also known by Spyders or Spider name. XLE has risen from its bottom in March but has still underperformed the broader market over the past year. It has provided a total return of -45.3% over the past 12 months, well below the Russell 1000's total return of 13.4%, as of September 25, 2020. In this article, we are going to see the most important energy stocks sorted by its best value, fastest earnings growth, and greatest momentum. All statistics in the tables below are as of September 28.  

Energy Stocks Sorted by its Market Value

	Price ($)	Market Cap ($B)	12-Month Trailing P/E Ratio
Murphy Oil Corp. (MUR)	8.73	1.3	5.7
Cheniere Energy Inc. (LNG)	49.65	12.5	11.6
Valvoline Inc. (VVV)	19.12	3.5	16.2

  Murphy Oil Corp.: Murphy Oil is a global oil and gas exploration and production company. It also has refining and retail operations. Cheniere Energy Inc.: Cheniere Energy is an energy company focused on liquefied natural gas (LNG). It owns and operates LNG terminals and pipelines. Valvoline Inc.: Valvoline company which has reported a 9.2% decline in its net income, is a manufacturer and distributor of automotive lubricants and chemicals. The company produces motor oil, antifreeze, brake fluid, grease products, and more. Valvoline company sales fell 15.8% in Q2 2020, which ended June 30, 2020. The company noted that lockdowns related to COVID-19 adversely impacted its financial results in April and May, but the situation began to improve in June.  

Energy Stocks Sorted by its Fastest Growth

	Price ($)	Market Cap ($B)	EPS Growth %
Valero Energy Corp. (VLO)	43.92	17.9	108.8
Antero Midstream Corp. (AM)	5.34	2.5	28.6
Williams Companies Inc. (WMB)	19.98	24.3	-3.9

  Valero Energy Corp.: Headquartered in the US, Valero company refines petroleum and produces ethanol at operations in the US, Canada, and Aruba. The company is also involved in producing conventional types of gasoline, distillates, jet fuel, asphalt, petrochemicals, lubricants, diesel fuel, and other refined products. Despite a 64.1% decline in revenue in Q2 2020, which ended June 30, 2020, the company recorded a net income growth of 106.0%, as well as its cost of sales which were much lower compared to the year-ago quarter. Antero Midstream Corp.: Antero Midstream company operates gathering pipelines and compressor stations, as well as operating water distribution, clearwater facility, fractionation, and pipeline safety services. In Q2 2020 the company reported a 14% decline. However, lower operating expenses made its net income growth of 27.7%. Williams Companies Inc.: Williams Companies is an energy infrastructure company operating natural gas pipelines across North America.  

Energy Stocks Sorted by its Most Momentum

	Price ($)	Market Cap ($B)	12-Month Trailing Total Return
EQT Corp. (EQT)	13.87	3.5	25.2
Cabot Oil & Gas Corp. (COG)	18.12	7.2	5.4
Antero Midstream Corp. (AM)	5.34	2.5	-8.0
Russell 1000	N/A	N/A	13.4
Energy Select Sector SPDR ETF (XLE)	N/A	N/A	-45.3

  EQT Corp.: an integrated energy company that explores and produces natural gas, natural gas liquids, crude oil, and transmission in the Appalachian area. EQT reported a net loss of $263.1 million in Q2 2020 ended June 30, 2020, compared to a net income of $125.6 million in the year-ago quarter. Revenue for the quarter fell 59.8%.   Cabot Oil & Gas Corp.: Throughout North America, including locations in Texas, the Rocky Mountains, and the Western United States, Cabot Oil & Gas company develops and explores oil and gas properties. The company which has reported a decline of 83.2% in its net income said it had succeeded in maintaining profitability amid historically low natural gas prices due to the pandemic. Its sharp decline comes as its revenue fell 37.8% in Q2 2020, which ended June 30, 2020.   Source: Investopedia  

You might also be interested in:

Most Important Communications Stocks for October 2020