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Don't Overlook These 3 Energy Stocks With Strong EPS Growth
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We know that Oil – Energy stocks can take a sudden turn for the good (or bad), making stock picking a risky game. Let’s look at three stocks, with substantial EPS growth over the last few years, which investors may want to consider at the current levels.
While many energy companies are struggling with volatility in energy prices in the current market environment, Sunoco LP (SUN - Free Report) is at the top of the list of stocks to have reached ‘Buy’ territory. SUN is part of the well-placed Zacks Oil and Gas - Refining & Marketing MLP industry, currently in the top 4% of all Zacks Industries.
Sunoco participates in the transportation and supply phase of the U.S. petroleum market across a number of states. It also focuses on motor fuel distribution to convenience stores, independent dealers and commercial customers.
Sunoco carries a Zacks Rank #1 (Strong Buy), with earnings estimate revisions trending higher. Even better, earnings estimates for 2023 are up 22% over the last 60 days. Moreover, trading at $58.65 per share and 15.31X forward earnings, SUN trades far more conservatively to its 10-year high of 245.52X, though it is at a slight premium to the median of 12.47X.
While Sunoco stock had gained 73.3% over the last decade, it has climbed 37.6% in the last two years alone to crush the S&P 500’s decline of 0.1%. Over the past month, the stock has been up 9.8%, though the benchmark has gained a mere 1.6% during the period.
Sunoco earnings are now anticipated to have gone up 10.9% for 2023 at $5.19 per share and are expected to shed 26.2% in 2024. But what’s impressive is that 2023 earnings of $5.19 per share are likely to see a neat 84% increase over the last five years, with 2019 EPS at $2.82 a share.
Another candidate for attractive EPS growth is Murphy USA (MUSA - Free Report) . It belongs to the Zacks Oil and Gas - Refining & Marketing industry, which is currently in the top 35% of over 250 Zacks Industries.
It is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA currently sports a Zacks Rank #2 (Buy), with earnings estimate revisions trending higher.
Trading at a little over $376 per share and 15.34X forward earnings, MUSA has a VGM Score of A. In fact, the company trades 45% below its decade high of 28X and at a 7% discount to the median of 16.46X.
Murphy USA is now up 770% over the last decade to comprehensively beat the S&P 500’s increase of 162%. But in the recent past, the stock has gained 3.2% over the last three months, underperforming the benchmark during the period. In other words, Murphy USA shares appear to be oversold at the moment, considering its ‘Buy’ rank and valuation.
MUSA earnings are forecast to have declined 12.8% in 2023 and are likely to remain flat in 2024 at $24.52 per share. However, that would still be an outstanding 366% increase from the 2019 adjusted EPS of $5.26 a share.
Rounding out the list is NuStar Energy , which is a master limited partnership that engages in the transportation and storage of crude oil as well as refined products in the United States, the Netherlands Antilles, Canada, Mexico and the U.K.
Zacks Rank #3 (Hold) NuStar’s stock price has trended higher in the recent past, with its valuation also supporting that there could be more upside. Trading around $18.70 a share and with 16.51X forward earnings, NS stock trades well below its historical high of 36.58X and at a 17% discount to the median of 19.87X.
NuStar has still fallen 62.1% in a decade but has climbed 8.5% over the last three months, essentially in line with the benchmark S&P 500 Index. NuStar earnings are expected to have dropped 10.9% for 2023 but could turn around 38.1% this year to $1.13 per share. As a matter of fact, 2024 could witness an attractive 30% increase from the 2019 adjusted EPS of 87 cents a share.
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Don't Overlook These 3 Energy Stocks With Strong EPS Growth
We know that Oil – Energy stocks can take a sudden turn for the good (or bad), making stock picking a risky game. Let’s look at three stocks, with substantial EPS growth over the last few years, which investors may want to consider at the current levels.
While many energy companies are struggling with volatility in energy prices in the current market environment, Sunoco LP (SUN - Free Report) is at the top of the list of stocks to have reached ‘Buy’ territory. SUN is part of the well-placed Zacks Oil and Gas - Refining & Marketing MLP industry, currently in the top 4% of all Zacks Industries.
Sunoco participates in the transportation and supply phase of the U.S. petroleum market across a number of states. It also focuses on motor fuel distribution to convenience stores, independent dealers and commercial customers.
Sunoco carries a Zacks Rank #1 (Strong Buy), with earnings estimate revisions trending higher. Even better, earnings estimates for 2023 are up 22% over the last 60 days. Moreover, trading at $58.65 per share and 15.31X forward earnings, SUN trades far more conservatively to its 10-year high of 245.52X, though it is at a slight premium to the median of 12.47X.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While Sunoco stock had gained 73.3% over the last decade, it has climbed 37.6% in the last two years alone to crush the S&P 500’s decline of 0.1%. Over the past month, the stock has been up 9.8%, though the benchmark has gained a mere 1.6% during the period.
Sunoco earnings are now anticipated to have gone up 10.9% for 2023 at $5.19 per share and are expected to shed 26.2% in 2024. But what’s impressive is that 2023 earnings of $5.19 per share are likely to see a neat 84% increase over the last five years, with 2019 EPS at $2.82 a share.
Another candidate for attractive EPS growth is Murphy USA (MUSA - Free Report) . It belongs to the Zacks Oil and Gas - Refining & Marketing industry, which is currently in the top 35% of over 250 Zacks Industries.
It is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA currently sports a Zacks Rank #2 (Buy), with earnings estimate revisions trending higher.
Trading at a little over $376 per share and 15.34X forward earnings, MUSA has a VGM Score of A. In fact, the company trades 45% below its decade high of 28X and at a 7% discount to the median of 16.46X.
Murphy USA is now up 770% over the last decade to comprehensively beat the S&P 500’s increase of 162%. But in the recent past, the stock has gained 3.2% over the last three months, underperforming the benchmark during the period. In other words, Murphy USA shares appear to be oversold at the moment, considering its ‘Buy’ rank and valuation.
MUSA earnings are forecast to have declined 12.8% in 2023 and are likely to remain flat in 2024 at $24.52 per share. However, that would still be an outstanding 366% increase from the 2019 adjusted EPS of $5.26 a share.
Rounding out the list is NuStar Energy , which is a master limited partnership that engages in the transportation and storage of crude oil as well as refined products in the United States, the Netherlands Antilles, Canada, Mexico and the U.K.
Zacks Rank #3 (Hold) NuStar’s stock price has trended higher in the recent past, with its valuation also supporting that there could be more upside. Trading around $18.70 a share and with 16.51X forward earnings, NS stock trades well below its historical high of 36.58X and at a 17% discount to the median of 19.87X.
NuStar has still fallen 62.1% in a decade but has climbed 8.5% over the last three months, essentially in line with the benchmark S&P 500 Index. NuStar earnings are expected to have dropped 10.9% for 2023 but could turn around 38.1% this year to $1.13 per share. As a matter of fact, 2024 could witness an attractive 30% increase from the 2019 adjusted EPS of 87 cents a share.