| Over the past 20 years, the price of oil has gyrated back and forth between roughly $20 and $100 per barrel. (There were a few outliers, like when oil prices briefly went negative and when they spiked to $147.) Today, it's barely above $60, which means quality oil stocks are on sale. Companies like small cap Precision Drilling (NYSE: PDS) are trading at less than six times free cash flow. The company generated $150 million in free cash flow over the past 12 months. Despite Precision's earnings being projected to grow 298% over the next five years, the stock trades at just 11 times forward earnings. Tidewater (NYSE: TDW), which provides vessels for offshore oil drilling, also generates plenty of cash flow and is trading at a big discount at less than nine times free cash flow and 13 times forward earnings. Lastly, one of my favorite companies, Enterprise Products Partners (NYSE: EPD), which operates pipelines to transport oil and gas, pays a 7% tax-deferred dividend and is on pace to generate nearly $8 billion in distributable cash flow, which means the stock is trading at just eight times cash flow. Whatever trend is hot in the market, I like to dig a little deeper to find the value and the companies that are vital to the new technology. Energy is that sector in the booming AI space. Good investing, Marc P.S. China has been using a fascinating strategy to challenge America's AI dominance. They've essentially created their own Silicon Valley... 21 times over. But here's the good news... There is now a plan in place that will help make America the leader in technological innovation for decades to come. And it has to do with what President Trump calls "Freedom Cities." All in all, this could be a $140 trillion - yes, trillion - opportunity. I have all the details for you right here. |
Post a Comment
Post a Comment