The inflationary environment is posing a threat to the overall energy sector since there are huge possibilities of additional interest rate increases, which could dampen energy demand. However, that doesn’t necessarily mean investors should stay away from the sector. In fact, many energy companies have witnessed upward earnings estimate revisions for this year. Three such companies are Core Laboratories Inc. CLB, Profire Energy, Inc. PFIE and CVR Energy, Inc. CVI.
Oil Price High
The crude pricing scenario remains in the bullish territory. The West Texas Intermediate crude is trading above the $80 per barrel mark despite concerns about further rate hikes that may dent energy demand. The possibility of supply disruption in the U.S. Gulf Coast, as Florida braces for the impact of Tropical Storm Idalia, is supporting the commodity price. China’s move to boost its struggling economy is also pushing oil prices higher.
Thus, crude prices remain favorable for exploration and production activities. Possibilities for increased upstream operations may favor demand for oilfield services as they help explorers and producers in efficiently drilling oil and gas wells.
3 Stocks in the Spotlight
The outlook for the refining business seems bright as demand may remain handsome amid areduction inglobalrefiningcapacity. Considering the backdrop, we have zeroed in on three energy stocks by employing our proprietary stock screener. All the stocks have witnessed upward earnings estimate revisions for 2023 over the past 30 days. While one stock sports a Zacks Rank #1 (Strong Buy), the remaining two carry a Zacks Rank #2 (Buy).
Being a well-known provider of patented reservoir description and production enhancement services, Core Laboratories (Core Lab) is well-positioned to grow, thanks to improving demand for reservoir description services. #2 Ranked Core Lab is also focused on deducing its debt load.
Profire Energy is a leading provider of powerful and safe burner and combustion management solutions. Profire Energy, with a Zacks Rank of 2, is highly focused on expanding its product solutions in oil and gas operations that have new opportunities. Handsome customer demand and continued progress in diversification efforts are aiding PFIE’s overall business.
Having direct access to prolificcrude oil fields in the Anadarko and Arkoma Basins,leading petroleum refiner CVR Energy is well-poised to grow. #1 Ranked CVI is leveraging its strong refining fundamentals, therefore driving its cashflows and earnings momentum.
Core Laboratories Inc. (CLB): Free Stock Analysis Report
CVR Energy Inc. (CVI): Free Stock Analysis Report
Profire Energy, Inc. (PFIE): Free Stock Analysis Report
To read this article on Zacks.com click here.
This article originally appeared on Zacks
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
