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Wall Street: which energy stocks are worth paying attention to


29 listopada 2022
watermark Economic news

Shares of energy companies are often seen as a protection against inflation, since the energy sector is closely linked to all areas of everyday life, and energy companies will always stay afloat without experiencing a shortage of sales of their products. 


This year, the energy sector has grown steadily: the S&P 500 index has grown by 61% since the beginning of the year. Wall Street analysts pointed to 2 companies whose shares have recently been in great demand and received a rating of «confidently recommended for purchase». 


  1. Denbury Resources Inc is a company that simultaneously produces hydrocarbons and clean energy. 


The company has concentrated its activities on the extraction of tertiary oil and enhanced oil recovery at the main production fields. In addition, Denbury Resources is a leader in carbon capture, recovery and storage technologies.


For the third quarter of this year, the company's revenue increased by 28% compared to the same period last year – to $439.49 million. Net profit at the same time amounted to $ 250 million. Analysts' target price of $144 suggests that the company's shares could grow by 64% over the next year. With an average target price of $118.80 and a current trading price of $87.61, the stock has an average growth potential of 36% per year.


  1. Vistra Energy Corp is a Texas utility company that engages in the electric power industry, including the production, transmission and distribution of electricity.


According to the company's latest quarterly report, Vistra's revenue was $5.15 billion compared to $2.99 billion for the same quarter last year. Thus, the growth was 72%. The company's net profit was $678 million, of which $667 million was indicated as net profit from current operations. 


Analysts offer a target price of $32 per share, which implies an annual growth potential of about 35%. On Wall Street, Vesta Energy shares are valued at $23.79, and their average target price of $31.40 suggests growth of about 32% per year.


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