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Best-Performing Stocks of the Top ETF of the Fourth Quarter
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iShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) topped the list of the best-performing U.S. equity ETFs in the fourth quarter, gaining 50.7%. The rally was driven by rising oil prices on supply cut fears and China’s demand boost.
Although most of the stocks in IEZ’s portfolio have delivered strong returns this quarter, a few have gained more than 50%. These include Oceaneering International Inc. (OII - Free Report) , Helix Energy Solutions Group Inc. (HLX - Free Report) , Transocean Inc. (RIG - Free Report) , Weatherford International Public Limited Company (WFRD - Free Report) and Halliburton (HAL - Free Report) .
Investors are betting on a recovery in fuel demand as China continues to ease its COVID-19 restrictions next month after three years. Oil price was also supported by the news that Russia may cut oil output by 5-7% in early 2023 and halt sales to countries supporting a price cap on its crude and oil products. Russia warned that it may cut output by as much as 700,000 barrels per day in response to sanctions on the nation’s crude (read: Energy ETFs Beat S&P 500 in 2022, More Gains Likely in 2023).
Additionally, oil output was disrupted by an Arctic blast that sent temperatures well below freezing point, cutting oil and gas production from North Dakota and Texas. The cold snap has halted one-third of refining capacity on the Texas Gulf Coast and as much as 350,000 barrels a day of crude output in North Dakota.
However, recession fears and the restart of some U.S. energy plants shut by winter storms continued to weigh on oil prices.
Let’s take a closer look at the fundamentals of IEZ.
IEZ in Focus
iShares U.S. Oil Equipment & Services ETF offers exposure to U.S. companies that provide equipment and services for oil exploration and extraction. It follows the Dow Jones U.S. Select Oil Equipment & Services Index, holding 29 stocks in its basket.
iShares U.S. Oil Equipment & Services ETF has amassed $330.2 million in its asset base while charging 39 bps in fees per year from investors. It trades in an average daily volume of 758,000 shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Below we have highlighted the above-mentioned five stocks in the ETF with their respective positions in the fund’s basket:
Best Performing Stocks of IEZ
Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. It has estimated earnings growth of 82.3% for this year and has a market cap of $1.69 billion. The stock makes up for a 1.5% share in the IEZ basket and has soared 121% over the past three months.
Helix Energy is an international offshore energy company that provides specialty services to the offshore energy industry, with focus on their growing well intervention and robotics operations. Helix Energy has an estimated earnings growth rate of 4.9% for this year.
Helix Energy has soared about 85.7% in Q4 and makes up for a 0.9% share in the IEZ basket. The stock has a Zacks Rank #3 (Hold).
Transocean is the world’s largest offshore drilling contractor and leading provider of drilling management services. The stock has jumped 73.3% over the past month and accounts for a 2.8% share in the ETF.
Transocean has an estimated earnings growth rate of 23% for this year. It has a Zacks Rank #3.
Weatherford International provides oil field services and equipment. The company offers drilling solutions, gas well unloading, restoration and other related activities. Weatherford International has rallied 64.2% in the final quarter of 2022 and makes up for 2.9% in the IEZ portfolio.
Weatherford International has estimated earnings growth of 107.2% for this year. It has a Zacks Rank #3 (read: Pain or Gain Ahead for Energy ETFs?).
Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. The stock jumped 58.7% and accounts for a 21.5% share in the ETF.
Halliburton has an estimated earnings growth rate of 94.4% for this year and carries a Zacks Rank #2.
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Best-Performing Stocks of the Top ETF of the Fourth Quarter
iShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) topped the list of the best-performing U.S. equity ETFs in the fourth quarter, gaining 50.7%. The rally was driven by rising oil prices on supply cut fears and China’s demand boost.
Although most of the stocks in IEZ’s portfolio have delivered strong returns this quarter, a few have gained more than 50%. These include Oceaneering International Inc. (OII - Free Report) , Helix Energy Solutions Group Inc. (HLX - Free Report) , Transocean Inc. (RIG - Free Report) , Weatherford International Public Limited Company (WFRD - Free Report) and Halliburton (HAL - Free Report) .
Investors are betting on a recovery in fuel demand as China continues to ease its COVID-19 restrictions next month after three years. Oil price was also supported by the news that Russia may cut oil output by 5-7% in early 2023 and halt sales to countries supporting a price cap on its crude and oil products. Russia warned that it may cut output by as much as 700,000 barrels per day in response to sanctions on the nation’s crude (read: Energy ETFs Beat S&P 500 in 2022, More Gains Likely in 2023).
Additionally, oil output was disrupted by an Arctic blast that sent temperatures well below freezing point, cutting oil and gas production from North Dakota and Texas. The cold snap has halted one-third of refining capacity on the Texas Gulf Coast and as much as 350,000 barrels a day of crude output in North Dakota.
However, recession fears and the restart of some U.S. energy plants shut by winter storms continued to weigh on oil prices.
Let’s take a closer look at the fundamentals of IEZ.
IEZ in Focus
iShares U.S. Oil Equipment & Services ETF offers exposure to U.S. companies that provide equipment and services for oil exploration and extraction. It follows the Dow Jones U.S. Select Oil Equipment & Services Index, holding 29 stocks in its basket.
iShares U.S. Oil Equipment & Services ETF has amassed $330.2 million in its asset base while charging 39 bps in fees per year from investors. It trades in an average daily volume of 758,000 shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Below we have highlighted the above-mentioned five stocks in the ETF with their respective positions in the fund’s basket:
Best Performing Stocks of IEZ
Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. It has estimated earnings growth of 82.3% for this year and has a market cap of $1.69 billion. The stock makes up for a 1.5% share in the IEZ basket and has soared 121% over the past three months.
Oceaneering International carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Helix Energy is an international offshore energy company that provides specialty services to the offshore energy industry, with focus on their growing well intervention and robotics operations. Helix Energy has an estimated earnings growth rate of 4.9% for this year.
Helix Energy has soared about 85.7% in Q4 and makes up for a 0.9% share in the IEZ basket. The stock has a Zacks Rank #3 (Hold).
Transocean is the world’s largest offshore drilling contractor and leading provider of drilling management services. The stock has jumped 73.3% over the past month and accounts for a 2.8% share in the ETF.
Transocean has an estimated earnings growth rate of 23% for this year. It has a Zacks Rank #3.
Weatherford International provides oil field services and equipment. The company offers drilling solutions, gas well unloading, restoration and other related activities. Weatherford International has rallied 64.2% in the final quarter of 2022 and makes up for 2.9% in the IEZ portfolio.
Weatherford International has estimated earnings growth of 107.2% for this year. It has a Zacks Rank #3 (read: Pain or Gain Ahead for Energy ETFs?).
Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. The stock jumped 58.7% and accounts for a 21.5% share in the ETF.
Halliburton has an estimated earnings growth rate of 94.4% for this year and carries a Zacks Rank #2.