| Merry Christmas from the whole Banyan Hill team! Today I’m sharing a recent piece Adam O’Dell published in Stock Power Daily, his free daily newsletter which shares a bite-sized stock analysis every day of the week. Stocks to buy … and ones to avoid … are all covered in Stock Power Daily. And many of the ones he features, rated 80 or above, have beaten the market by 4X over the last 20 years. So, in the spirit of Adam’s recent bullishness on the energy sector — and Christmas! — he’s sharing three energy stocks with a perfect 100 score… Check them out below, and sign up for Stock Power Daily here to get tips just like these in your inbox every weekday. — Charles Sizemore | Chief Editor, The Banyan Edge | 3 Stocks to Crush the Market as Energy Leads by: Adam O'Dell | Chief Investment Strategist, Money & Markets
December 25, 2022 Banyan Nation,
After languishing for years at the bottom of the stock market, energy is making a huge comeback. From the start of 2018 to its lowest point in March 2020, the Energy Select SPDR Fund (NYSE: XLE) dropped 67.4%. At one point, oil prices even went negative. Energy stocks were, quite simply, the bottom of the stock market barrel. Since that low, however, energy stocks have roared back. XLE climbed 288.2% since hitting that bottom in March 2020: (Click here to view larger image.) On top of that, the sector is up 46% this year while the S&P 500 is down 20%. There’s a lot of uncertainty surrounding European and North American energy today, and prices in recent weeks have reflected that. But I’m confident the uptrend in energy is far from over. That’s why, today, I’m diving into our Stock Power Ratings system to find our three highest-rated energy stocks. All three score a perfect 100, and are worth a serious look if you want to take part in what I believe will ultimately become the trade of the decade. Top 3 Energy Stocks to Buy Now Perfect-Score Energy Pick #1: Torm PLC (Nasdaq: TRMD) The first stock on the list is a United Kingdom-based midstream oil and gas company. It focuses on processing, transporting and marketing oil and natural gas products. (Click here to view larger image.) TRMD’s Stock Power Ratings in November 2022. Torm PLC owns and operates tankers used to transport oil and natural gas from upstream miners to downstream refiners. TRMD scores a “Strong Bullish” 100 on our Stock Power Ratings system — the highest score a stock can receive. TRMD is an excellent value stock — earning a 94 on that factor. Its price-to-earnings ratio is less than half the industry average. On top of that, TRMD has a forward dividend yield of 20.9%, paying you $5.84 per share per year. Overall though, stocks with a rating of 80 or higher have had a tendency to outperform the market by 4X over the last two decades… But when you consider the state of the broad market now and the strong trend in energy, I expect it to beat the market by 3X in the next 12 months. As you can see, oil isn’t the only big opportunity in the energy markets today. Companies with exposure to natural gas are also poised for gains. Which brings us to… Perfect-Score Energy Pick #2: Transportadora De Gas Del Sur TGS SA (NYSE: TGS) For our second stock, we head to South America. Transportadora De Gas Del Sur TGS SA (NYSE: TGS) is an Argentinian company that produces and sells natural gas all over the continent. (Click here to view larger image.) TGS’ Stock Power Ratings in November 2022. Natural gas makes up 63% of all Argentina’s electricity production, putting TGS in the driver’s seat to generate even more gains. Like TORM, TGS is a fantastic value stock — scoring a 99 on that factor. Its price-to-sales, price-to-cash flow and price-to-book value ratios are all nearly three times lower than the midstream energy sector. It also ranks strongly in terms of its momentum, participating in the strong bullish trend in energy. It’s not too big, with a market cap at $2.4 billion. And it’s fairly stable, with a volatility score of 78. The one factor where TGS isn’t in the Green Zone is in growth. There’s growth … it’s just not growing as fast or as much as other companies. Regardless, Transportadora scores a “Strong Bullish” 100 on our Stock Power Ratings system. We expect it to beat the broader market by 3X in the next 12 months. As I covered last Sunday, U.S. energy stocks are uniquely poised for outsized gains. And that brings us to our third energy pick… | | | A tiny Silicon Valley company is using artificial intelligence to unleash the largest untapped energy source in the world. I’m not talking about oil, gas, wind, solar, hydro, nuclear … or anything you’ve likely heard about before… Yet this breakthrough is set to help launch an era of cheap, abundant electricity the likes of which the world has never seen. In fact, the growth here could be almost unimaginable. To get the whole story, including details of the company responsible, click here now… | Perfect-Score Energy Pick #3: Evolution Petroleum Corp. (NYSE: EPM) Our final top energy stock explores oil and gas in Wyoming, Louisiana and Texas. Houston-based Evolution Petroleum Corp. (NYSE: EPM) owns properties in the Delhi oil fields (Louisiana), Barnette Shale (Texas) and Hamilton Dome (Wyoming). (Click here to view larger image.) EPM’s Stock Power Ratings in November 2022. The company’s strategy is to locate property with long-term potential to produce oil and gas. While TORM and TGS are great value stocks, EPM excels as a quality and growth play. Its one-year annual sales growth rate is 233%, and its earnings-per-share growth rate is 290.4% — earning it a 97 on our growth factor. EPM’s return on assets is 33.2% compared to the fossil fuels exploration industry average of 8.3%. The company’s return on assets is more than double the peer average. Not to mention, EPM has a forward dividend yield of 6.23%, paying you $0.48 per share, per year. That’s why EPM earns a 96 on our quality factor. And its recent performance reflects all this. Over the last 12 months, EPM stock has climbed 44.3%! Evolution Petroleum stock scores a “Strong Bullish” 100 on our Stock Power Ratings system. We expect it to beat the broader market by 3X in the next 12 months. Top 3 Energy Stocks: The Bottom Line The energy sector has screamed ahead since the corona crash of 2020. But I’m confident this trend is far from finished. That makes these three high-rated energy stocks serious contenders for your portfolio. But if you want my #1 favorite energy stock in the market, check this out. Right now, I have my eye on another stock that I’m reserving exclusively for my paying subscribers. While the stocks we talked about today could run 3X higher in the next 12 months… The stock I’ll detail in an exclusive presentation on December 28 could run 100% higher in 100 days or less. It’ll be the next of many signs that we’re in a new energy bull market … and that U.S. oil stocks will be the trade of the decade. Click here for the full details on how you can get access. Merry Christmas, Adam O'Dell Chief Investment Strategist, Money & Markets | | | After the tech bubble popped in 2000, there were some amazing bargains available… You could get Amazon for just $6! I believe this time is no different. With the recent tech sell-off, there are some incredible companies trading at discounts we’ll never likely see again in our lifetimes. And I believe I have the name of the #1 bargain right now. This is a tiny Silicon Valley company that’s using AI to do something incredible. To get the whole story, including details of my #1 tech bargain, click here now… | (c) 2022 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: http://banyanhill.com/contact-us Remove your email from this list: Click here to Unsubscribe |
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