Energy

5 Sizzling Energy Stocks Trading Under $10 With Oil Closing in on $70 a Barrel

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While most of Wall Street focuses on large-cap and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it is difficult to get any decent share count leverage.

Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.

Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms priced under $10 per share. Last week’s picks included biotech stocks Isoray and Savara. This week we were looking for energy stocks. With West Texas Intermediate (WTI) crude trading near the $70 a barrel level, and expected to go even higher this summer, these stocks could have big-time upside potential.

With the number of new equity traders skyrocketing over the past year due to the popularity of Robinhood and WallStreetBets, locating good ideas to trade has become even more challenging. These five could all prove to be exciting additions for traders looking for solid alpha potential. While they are definitely better suited for aggressive investors, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Cenovus Energy

With WTI closing in on $70 level recently, this stock in the Great White North may be a solid energy idea. Cenovus Energy Inc. (NYSE: CVE) develops, produces and markets crude oil, natural gas liquids (NGLs) and natural gas in Canada, the United States and the Asia Pacific region.

The Oil Sands segment develops and produces bitumen in northeast Alberta. Its bitumen assets include Foster Creek, Christina Lake and Narrows Lake, as well as other projects in the early stages of development. The Conventional segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson and Clearwater operating areas of British Columbia and Alberta, as well as various interests in natural gas processing facilities.

The Refining and Marketing segment transports and sells crude oil, natural gas and NGLs. This segment owns a 50% ownership in Wood River and Borger refineries located in the United States, and it owns and operates a crude-by-rail terminal in Alberta.

CIBC has a C$16 (US$13.25) price target, which compares with the consensus target of $10.50. Cenovus Energy stock closed Friday at $8.13.


Crescent Point Energy

This is another Canadian company whose shares make sense for investors looking to get some share-count leverage. Crescent Point Energy Corp. (NYSE: CPG) explores, develops and produces light and medium crude oil and natural gas reserves in western Canada and the United States. The company’s crude oil and natural gas properties, and related assets are located in the provinces of Alberta, British Columbia, Manitoba and Saskatchewan, as well as the states of North Dakota and Montana.

The company closed its accretive transaction in February when it acquired Shell Canada Energy’s Kaybob Duvernay assets in Alberta for $900 million This strategic acquisition enhances Crescent Point’s core principles of balance sheet strength and sustainability. In particular, these assets, which are situated in the heart of the condensate-rich fairway, are expected to enhance the company’s free-cash-flow profile, inventory depth and include key infrastructure that is expected to lower future capital requirements.

The TD Securities price target is C$8 (US$6.65), while the consensus target is $8.85. The stock traded closed Friday at $4.09.

Genesis Energy

This stock remains reasonably well received on Wall Street. Genesis Energy L.P. (NYSE: GEL) operates in the midstream segment of the oil and gas industry in the Gulf Coast region of the United States. Its Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as in the deepwater pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico.

This segment owns interests in approximately 1,422 miles of crude oil pipelines located offshore in the Gulf of Mexico. Its Sodium Minerals and Sulfur Services segment provides sulfur-extraction services to refining operations, and it operates storage and transportation assets. This segment provides services to 10 refining operations and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals.

Investors receive a 6.38% distribution. RBC’s $12 price objective compares with a $12.47 consensus target. Genesis Energy stock closed Friday at $9.34.

Kosmos Energy

This is a solid energy exploration and production play, and with oil and gas prices rising, it could be an outstanding idea now. Kosmos Energy Ltd. (NYSE: KOS) is a deepwater independent oil and gas exploration and production company focused along the Atlantic Margins.

The company’s primary assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program.

Kosmos Energy’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.

Goldman Sachs has set its target price at $4.50. The posted consensus target for Kosmos Energy stock is $3.64. The shares closed Friday at $3.18.

Southwestern Energy

This stock has traded sideways all year long and could be ready to run. Southwestern Energy Co. (NYSE: SWN) is one of the largest U.S. natural gas producers. Its primary producing locations are in the Fayetteville region and the Marcellus Shale. The company has acquired acreage in southwest Appalachia, is exceeding expectations and provides a runway to growth.

The company’s estimated proved natural gas, oil and NGL reserves comprise 12,721 billion cubic feet of natural gas equivalent (Bcfe) and 929 Bcfe of proved undeveloped reserves. It also engages in marketing of natural gas, oil and NGLs. Southwestern Energy serves energy companies, utilities and industrial purchasers of natural gas.

The $6.75 Johnson Rice price target may be ready to move higher. Analysts on average have a target of $5.40 on Southwestern Energy stock. The shares have retreated somewhat from the recent 52-week high closing Friday at $5.17.


With WTI pushing $70 a barrel, many on Wall Street continue pounding the table on the sector as a go-to trade and the place to be for 2021. These stocks offer aggressive investors a way to play the sector plus get some solid share count leverage.

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