Energy Industry Research & Analysis
Home Market Analysis Index Energy Industry Research & Analysis
BUY
Value Indicators
Strengths + Opportunities = 102
Threats + Weaknesses = 66
When strengths & opportunities substantially exceed threats & weaknesses, an investment in the energy industry has great long term potential.
Energy Industry Research Report
Energy Industry Profile _ (edit/improve) The energy industry represents a variety of types of companies structured around meeting customer's energy needs. This includes procuring oil and natural gas resources, refining these assets, as well as transmitting these resources to customers. The energy industry includes oil, gas, and other resources. Exploration and extraction are often lucrative aspects of the industry and center around procurement of these natural resources. Refinement centers around formatting these resources for consumption, while delivery involves transmitting these resources to the ultimate consumer. Often transmittal of energy is performed by pipeline companies, often structured as master limited partnerships in order to maximize the dividends paid to customers. The energy industry has several massive companies that hold the majority of the market capitalization of the industry, but also includes numerous decentralized companies that perform certain riskier aspects of the energy industry, including exploration, storage and transportation. The energy industry is dependent on commodity costs.
Energy Industry Analysis: The energy industry includes companies whose sales derive from the production and sale of energy related products and services such as the extraction, manufacturing, refining, and distribution of energy. Energy Trading Strategy: Energy investments tend to be very sensitive to commodity prices. Speculation and market manipulation by governments affect the energy market, therefore, cautiously invest in companies with significant potential. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Energy Industry Analysis, Research & Ratios ► (edit / improve)
Industry Analysis evaluates the major industry characteristics that affect investments. Company specific factors drive the performance of individual companies, but macro-economic factors can affect the performance, stock prices, growth rates, and chart movements of any stock, currency, or commodity. Review industry research before trading.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." No matter the quality of your business, industry economics is an important factor in any value investing decision.
Industry Statistics | Stat | Notes |
---|---|---|
Stock Research Rating | Buy | … |
Potential (safety margin) | 64% | High ~ Good for investors |
WACC Discount Rate | 8% | Low ~ Good for investors |
Comparative Multiples | Stat | Notes |
Revenue EV Multiple | 1.1x | Low ~ Good for investors |
EBITDA EV Multiple | 4.6x | Low ~ Good for investors |
EBIT EV Multiple | 5.5x | Low ~ Good for investors |
Cash Flow EV Multiple | 14.0x | … |
Book Value EV Multiple | 1.1x | Low ~ Good for investors |
Discounted Cash Flow (DCF) | Ratios | Notes |
Revenue Growth | 21% | High ~ Good for investors |
EBITDA Margin | 28% | High ~ Good for investors |
EBIT Margin | 21% | High ~ Good for investors |
Cash Flow Margin | 5% | … |
Taxes Rate | 37% | … |
Debt-Equity Ratio | 22% | Low ~ Good for investors |
ROIC | 5% | … |
Reinvestment Rate | 15% | … |
WACC Discount Rate | Rates | Notes |
Risk Free Rate | 4% | Low ~ Good for Investors |
Cost of Debt | 7% | Low ~ Good for Investors |
Equity Risk Premium | 5% | … |
Debt Required Return of Debt | 4% | Low ~ Good for Investors |
Required Return of Equity | 9% | … |
1 WikiWealth only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow (DCF), the enterprise value (EV) market multiple, and the Warren Buffett investment methods.
Description: The energy stocks includes companies whose sales derive from the production and sale of energy related products and services such as the extraction, manufacturing, refining, and distribution of energy (see full energy description: competitors, industry ratios, best stocks, market leaders, aggregate SWOT Analysis, and streaming industry news).
Profit Analysis: The best way to profit from energy stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, energy stocks tend to outperform the general stock market, because general consumer demand increases.
Energy stocks are most sensitive to commodity prices, which are an indicator of future energy demand. Energy commodity speculators try to predict the demand and supply of commodities, but their generally set prices too high during economic expansions and too low during economic recessions. Therefore, the best time to make energy stock investments is during economic recessions. The best time to sell energy stocks is in the late stages of economic expansions, when energy stocks and commodity prices are above their fair prices. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.
Trading Strategy: The energy stocks tends to be very sensitive to economic changes. Demand for energy is inelastic, so it does not easily change with changes in price. Therefore, changes in supply have a large impact on the price of fuel. Some sectors of the energy stocks require large investments over an extended period of time, which causes issues with adjusting energy supply with demand, so prices tend to be volatile. Energy stock prices tend to move in line with energy commodity prices. During economic recessions, consumers may decrease expenses slightly, but the majority of energy costs are not flexible, because they are needed for everyday living.
Since energy needs are inflexible, stock prices are less influenced by changed in the economy. However, commodity prices such as oil or natural gas have a direct impact on energy stock investments. Changes in commodity prices are a result of changes in supply and demand. Recently, oil prices increased, because of the demand for oil from emerging markets. Unfortunately, the global recession decreased growth estimates and demand until oil prices fell from 160 dollars a barrel to 35 dollars a barrel.
Part of oil price changes are do to speculation. When speculators increase the price of oil, many alternative sources of fuel become profitable. When companies make investments in these alternative sources of fuel, supply increases until energy prices start to fall. If prices fall too far, then the alternative fuel sources become less profitable and shutdown, which decreases demand. Stock prices rise and fall with energy commodity prices.
Energy Industry Leader
List of Energy Companies With Research Reports
Acergy (ACGY) Investment Research
Aegean Marine (ANW) Investment Research
Alliance (AHGP) Investment Research
Alliance Resource (ARLP) Investment Research
Allis-Chalmers (ALY) Investment Research
Alon USA Energy (ALJ) Investment Research
Alpha Natural Resources (ANR) Investment Research
Anadarko Petroleum (APC) Investment Research
Apache (APA) Investment Research
APCO Argentina (APAGF) Investment Research
Approach Resources (AREX) Investment Research
Arch Coal (ACI) Investment Research
Arena Resources (ARD) Investment Research
Atlas Energy Resources (ATN) Investment Research
Atlas Pipeline Pt (APL) Investment Research
ATP Oil & Gas (ATPG) Investment Research
Atwood Oceanics (ATW) Investment Research
Baker Hughes (BHI) Investment Research
Basic Energy Srvs (BAS) Investment Research
Benton Oil and Gas (HNR) Investment Research
Berry Petroleum (BRY) Investment Research
Bill Barrett Corp (BBG) Investment Research
BJ Services (BJS) Investment Research
Bolt Technology (BOLT) Investment Research
BP Global (BP) Investment Research
BreitBurn Energy (BBEP) Investment Research
Brigham Exploration (BEXP) Investment Research
Bristow Group (BRS) Investment Research
Bronco Drilling (BRNC) Investment Research
Buckeye GP (BGH) Investment Research
Buckeye Partners (BPL) Investment Research
Cabot Oil & Gas (COG) Investment Research
Cal Dive (DVR) Investment Research
Calumet (CLMT) Investment Research
Canadian Natural Resources (CNQ) Investment Research
Carbo Ceramics (CRR) Investment Research
Carrizo Oil & Gas (CRZO) Investment Research
Chesapeake Energy (CHK) Investment Research
Chevron (CVX) Investment Research
China Petroleum (SNP) Investment Research
Cimarex Energy (XEC) Investment Research
Clayton Williams Energy (CWEI) Investment Research
CNOOC (CEO) Investment Research
CNX Gas (CXG) Investment Research
Complete Production Srvs (CPX) Investment Research
Comstock Resources (CRK) Investment Research
Concho Resources (CXO) Investment Research
ConocoPhillips (COP) Investment Research
CONSOL Energy (CNX) Investment Research
Constellation Energy (CEP) Investment Research
Continental Resources (CLR) Investment Research
Core Labs (CLB) Investment Research
Credo Petroleum (CRED) Investment Research
CVR Energy (CVI) Investment Research
Dawson Geophysical (DWSN) Investment Research
Delek (DK) Investment Research
Delta Petroleum (DPTR) Investment Research
Denbury Resources (DNR) Investment Research
Devon Energy (DVN) Investment Research
Diamond Offshore (DO) Investment Research
Double Eagle Petroleum (DBLE) Investment Research
Dril-Quip (DRQ) Investment Research
Eagle Rock Energy (EROC) Investment Research
El Paso (EP) Investment Research
Enbridge (ENB) Investment Research
Enbridge Energy Mgmt (EEQ) Investment Research
Enbridge Energy Pt (EEP) Investment Research
Encana (ECA) Investment Research
Encore Acquisition (EAC) Investment Research
Encore Energy (ENP) Investment Research
Energy Transfer Equity (ETE) Investment Research
Energy Transfer Partners (ETP) Investment Research
Enerplus Resources (ERF) Investment Research
ENI (E) Investment Research
ENSCO (ESV) Investment Research
Enterprise GP (EPE) Investment Research
Enterprise Products (EPD) Investment Research
EOG Resources (EOG) Investment Research
EV Energy Partners (EVEP) Investment Research
EXCO Resources (XCO) Investment Research
Exterran (EXH) Investment Research
Exxon Mobil (XOM) Investment Research
FMC Technologies (FTI) Investment Research
Forest Oil (FST) Investment Research
Foundation Coal (FCL) Investment Research
Frontier Oil (FTO) Investment Research
FX Energy (FXEN) Investment Research
GeoResources (GEOI) Investment Research
Global Industries (GLBL) Investment Research
Global Partners (GLP) Investment Research
Goodrich Petroleum (GDP) Investment Research
GulfMark Offshore (GLF) Investment Research
Gulfport Energy (GPOR) Investment Research
Halliburton (HAL) Investment Research
Helix Energy Solutions (HLX) Investment Research
Helmerich & Payne (HP) Investment Research
Hercules Offshore (HERO) Investment Research
Hess (HES) Investment Research
Holly Corp (HOC) Investment Research
Holly Energy (HEP) Investment Research
Inergy (NRGP) Investment Research
Inergy (NRGY) Investment Research
International Coal (ICO) Investment Research
James River Coal (JRCC) Investment Research
Key Energy Srvs (KEG) Investment Research
Kinder Morgan Mgmt (KMR) Investment Research
Linn Energy (LINE) Investment Research
Magellan Midstream (MGG) Investment Research
Magellan Midstream (MMP) Investment Research
Marathon Oil (MRO) Investment Research
Mariner Energy (ME) Investment Research
Massey Energy (MEE) Investment Research
McMoRan Exploration (MMR) Investment Research
Murphy Oil (MUR) Investment Research
Nabors Industries (NBR) Investment Research
NATCO Gp (NTG) Investment Research
National Oilwell Varco (NOV) Investment Research
Natural Gas Services (NGS) Investment Research
Natural Resource (NRP) Investment Research
Newfield Exploration (NFX) Investment Research
Newpark Resources (NR) Investment Research
Nexen (NXY) Investment Research
Noble Energy (NE) Investment Research
Noble Energy (NBL) Investment Research
Nordic American Tanker (NAT) Investment Research
Occidental Petroleum (OXY) Investment Research
Oceaneering Intl (OII) Investment Research
Oil States Intl (OIS) Investment Research
Panhandle Royalty (PHX) Investment Research
Parker Drilling (PKD) Investment Research
Patriot Coal Corp (PCX) Investment Research
Patterson-UTI Energy (PTEN) Investment Research
Peabody Energy (BTU) Investment Research
Pengrowth Energy (PGH) Investment Research
Penn Virginia (PVR) Investment Research
Penn Virginia (PVA) Investment Research
Penn Virginia GP (PVG) Investment Research
Petrobras (PBR) Investment Research
Petrobras (PZE) Investment Research
Petro-Canada (PCZ) Investment Research
PetroChina (PTR) Investment Research
Petrohawk Energy (HK) Investment Research
Petroleum Development (PETD) Investment Research
Petroquest Energy (PQ) Investment Research
Pioneer Natural Resources (PXD) Investment Research
Plains All American Pipeline (PAA) Investment Research
Plains Exploration (PXP) Investment Research
Precision Drilling (PDS) Investment Research
Pride Intl (PDE) Investment Research
PrimeEnergy (PNRG) Investment Research
Quicksilver Resources (KWK) Investment Research
Range Resources (RRC) Investment Research
Regency Energy Partners (RGNC) Investment Research
Rex Energy (REXX) Investment Research
Rosetta Resources (ROSE) Investment Research
Rowan Cos (RDC) Investment Research
Royal Dutch Shell (RDS-A) Investment Research
Royale Energy (ROYL) Investment Research
RPC (RES) Investment Research
Sandridge Energy (SD) Investment Research
Santos (SSLTY) Investment Research
Schlumberger (SLB) Investment Research
Smith Intl (SII) Investment Research
Southwestern Energy (SWN) Investment Research
Spectra Energy (SE) Investment Research
Spectra Energy Pt (SEP) Investment Research
St. Mary Land (SM) Investment Research
Star Gas Partners (SGU) Investment Research
StatoilHydro (STO) Investment Research
Stone Energy (SGY) Investment Research
Suncor Energy (SU) Investment Research
Sunoco (SUN) Investment Research
Sunoco Logistics (SXL) Investment Research
Superior Energy Services (SPN) Investment Research
Superior Well Services (SWSI) Investment Research
Swift Energy (SFY) Investment Research
Talisman Energy (TLM) Investment Research
Teppco Pt (TPP) Investment Research
Tesco (TESO) Investment Research
Tesoro Petroleum (TSO) Investment Research
Tetra Technologies (TTI) Investment Research
Tidewater (TDW) Investment Research
Toreador Resources (TRGL) Investment Research
TotalFinaElf (TOT) Investment Research
Transmontaigne (TLP) Investment Research
Transocean (RIG) Investment Research
Ultra Petroleum (UPL) Investment Research
Ultrapar Participacoes (UGP) Investment Research
Union Drilling (UDRL) Investment Research
Unit Corp (UNT) Investment Research
Vaalco Energy (EGY) Investment Research
Valero (NS) Investment Research
Valero Energy (VLO) Investment Research
Valero GP Holdings (NSH) Investment Research
Venoco (VQ) Investment Research
Veritas (CGV) Investment Research
W&T Offshore (WTI) Investment Research
Walter Industries (WLT) Investment Research
Weatherford (WFT) Investment Research
Western Refining (WNR) Investment Research
Whiting Petroleum (WLL) Investment Research
Willbros Group (WG) Investment Research
Williams Cos. (WMB) Investment Research
World Fuel Services (INT) Investment Research
WSP Holdings (WH) Investment Research
XTO Energy (XTO) Investment Research
Yanzhou Coal Mining (YZC) Investment Research
YPF Sociedad Anonima (YPF) Investment Research
List of Energy ETFs With Research Reports
Global X China Energy ETF (CHIE)
Credit Suisse Cushing 30 MLP ETN (MLPN)
E-TRACS Alerian MLP Infrastructure (MLPI)
Oklahoma Exchange Traded (OOK)
Jefferies Wildcatters Exploration & Production (WCAT)
JPMorgan Alerian MLP ETN (AMJ)
EG Shares DJ Emerging Mrkts Energy Titans (EEO)
ProShares Short Oil & Gas (DDG)
SPDR S&P Intl Energy Sector ETF (IPW)
WisdomTree Intl Energy Sector Funds (DKA)
Market Vectors-Nuclear Energy ETF (NLR)
iShares S&P Global Energy (IXC)
PowerShares Global Nuclear Portfolio (PKN)
iShares DJ U.S. Energy Sector (IYE)
iShares S&P Global Nuclear Energy (NUCL)
Vanguard Energy ETF (VDE)
iShares S&P North American Natural Resources (IGE)
PowerShares Global Wind Energy Portfolio (PWND)
PowerShares Dynamic Energy E&P (PXE)
First Trust ISE Global Wind Energy ETF (FAN)
PowerShares Cleantech Portfolio (PZD)
PowerShares Dynamic Energy (PXI)
PowerShares WilderHill Progressive Energy (PUW)
iShares DJ US Oil & Gas Exploration & Production (IEO)
HOLDRS Merrill Lynch Market Oil Service (OIH)
Rydex S&P Equal Weight Energy ETF (RYE)
First Trust ISE-Revere Natural Gas (FCG)
iShares DJ U.S. Oil Equipment & Services (IEZ)
PowerShares Global Clean Energy Portfolio (PBD)
Claymore/SWM Canadian Energy Income ETF (ENY)
Direxion Energy Bear 3X Shares (ERY)
First Trust NASDAQ Clean Edge Green Energy (QCLN)
PowerShares Global Coal Portfolio (PKOL)
PowerShares Dynamic Oil Services (PXJ)
Market Vectors Global Alternative Energy ETF (GEX)
First Trust Energy AlphaDEX (FXN)
PowerShares WilderHill Clean Energy Portfolio (PBW)
Direxion Energy Bull 3X Shares (ERX)
iShares S&P Global Clean Energy (ICLN)
Market Vectors Coal ETF (KOL)
Rydex Inverse 2x S&P Select Sector Energy ETF (REC)
Claymore/MAC Global Solar Energy ETF (TAN)
Market Vectors Solar Energy ETF (KWT)
Rydex 2x S&P Select Sector Energy ETF (REA)
ProShares Ultra Oil & Gas (DIG)
Market Vectors Environment ETF (EVX)
List of Energy Mutual Funds With Research Reports
Blackrock All-Cap Engy & Res Investor A (BACAX)
Blackrock All-Cap Engy & Res Investor C (BACCX)
Calvert Global Alternative Energy A (CGAEX)
Profunds Ultrasector Oil & Gas Investor (ENPIX)
Fidelity Advisor Energy T (FAGNX)
Fidelity Advisor Energy A (FANAX)
Fidelity Advisor Energy C (FNRCX)
Fidelity Select Energy (FSENX)
Fidelity Select Energy Service (FSESX)
Fidelity Select Natural Gas (FSNGX)
Invesco Energy Inv (FSTEX)
Guinness Atkinson Global Energy (GAGEX)
Icon Energy S (ICENX)
Invesco Energy C (IEFCX)
Invesco Energy A (IENAX)
Ivy Energy A (IEYAX)
Ivy Energy C (IEYCX)
Leuthold Global Clean Tech Instl (LGCIX)
Leuthold Global Clean Tech Retail (LGCTX)
Munder Energy A (MPFAX)
Munder Energy C (MPFTX)
Profunds Oil Equipment Svc & Dist Inv (OEPIX)
Rydex Energy C (RYECX)
Rydex Energy Inv (RYEIX)
Rydex Energy Services A (RYESX)
Rydex Energy Services C (RYVCX)
Rydex Energy Services Inv (RYVIX)
Blackrock Energy & Resources Inv C (SSGDX)
Blackrock Energy & Resources Inv A (SSGRX)
Vanguard Energy Inv (VGENX)
RSS: New threads | New posts