But just because you've heard of a stock doesn't necessarily mean it's a good investment. See you at the top! Here's the 10-year performance of those same top oil companies as of that date: Although all of these companies badly underperformed the broader stock market, most still outperformed the industry: Note how the SPDR S&P Oil & Gas Explor & Prodtn ETF (NYSEMKT:XOP) -- the dark-green line -- has fallen by more than 65%, indicating that as a whole, the industry performed far worse than most of these stocks. Let's dig a little deeper and see whether oil and gas stocks look like good long-term investments or not. The global recession that began in 2008 stalled the rapid growth of big oil and gas markets like India and China. Increasing global use of plastics and jet fuel upped demand for oil and gas. While the global need for oil and gas is unlikely to vanish anytime soon, oil and gas stocks look like an increasingly uncertain long-term bet. Valero Downgraded on Competitive Pressure and Dividend Concerns.

Integra LifeSciences definitively agreed to sell Extremity Orthopedics to Smith & Nephew for $240 million.

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Something went wrong while loading Watchlist. Log in to see them here or sign up to get started. But just because a company's still in business doesn't mean it's an investment that will outperform. TSC_INDUSTRY = '"Petroleum and Coal Products Manufacturing"'; Your browser is not supported. How to analyze oil stocks The oil industry is inherently risky for investors.
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Meanwhile, technological advances like horizontal drilling and hydraulic fracturing ("fracking") allowed companies to accelerate production, which contributed to global oversupply. Stock Advisor launched in February of 2002. ET by Ryan Vlastelica. 20 years ago, top oil and gas stocks were big outperformers. As in many other industries, the larger the company, the safer it's likely to be. Some of the biggest companies in the world are oil and gas companies, like giant ExxonMobil (NYSE:XOM) and Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B). On Aug. 17, 2020, the S&P 500 officially set a new high, its first since its crash in March of that year. Market data powered by FactSet and Web Financial Group. All quotes are in local exchange time.

Oil & gas stocks, as represented by the Energy Select Sector SPDR ETF (XLE), have drastically underperformed the broader market over the past 12 months, posting a total return of … Action Alerts PLUS is a registered trademark of TheStreet, Inc.

Petroleum-based fuels and natural gas usually have a cost advantage over other heating and transportation fuels, and they have a massive infrastructure advantage over emerging clean energy fuels. Oil stocks are publicly traded companies involved in drilling, oil production. While many other sectors of the stock market have recovered much of their losses, oil stocks as a group remain extremely beaten down. Create a list of the investments you want to track. Buying stocks always involves a certain amount of risk, and you could lose 100% of your investment if the company in which you've bought stock goes under. exploration, refining and marketing. Risk sentiment, more broadly, was weak Tuesday. In March 2020, as demand for fuel dried up due to the coronavirus pandemic, several smaller exploration and production companies filed for bankruptcy, including Whiting Petroleum and Chesapeake Energy. Short-term production curtailments may come and go, but that supply is just sitting there, waiting to be tapped again. © 1996-2018 TheStreet Inc. All rights reserved, Microsoft These 10 gas and oil stocks are rated highest by TheStreet Ratings' value-focused stock rating model. And that … Meanwhile, clean energy alternatives may finally be reaching the tipping point. Historical and current end-of-day data provided by FACTSET. There are currently no items in this Watchlist.

However, most investors will want to look elsewhere for long-term growth and stability. Unfortunately, production and capacity were starting to outstrip demand.

A number of other electric car and truck companies went public in summer 2020, and all the major car companies began rolling out electric models.
Top oil and gas companies -- particularly the oil supermajors -- are still offering attractive dividend yields and will likely appeal to dividend investors for years if not decades to come. For example, the so-called "oil supermajors" -- ExxonMobil, Royal Dutch Shell, BP, Chevron (NYSE:CVX), and the French Total SA (NYSE:TOT) -- with global operations and annual revenues of more than $100 billion, aren't going to go out of business anytime soon. Find the product that's right for you. Duke Energy rises after it reportedly rebuffs a potential takeover bid from NextEra Energy, the world's largest utility owner by market value. John has found investing to be more interesting and profitable than collectible trading card games. Data as of 09/25/20 So it's fair to say that -- generally speaking -- large oil and gas companies tend to be safer than small ones, at least when it comes to not going out of business. Neither will large oil and gas exploration and production companies (E&Ps) like ConocoPhillips (NYSE:COP), big pipeline companies like Kinder Morgan (NYSE:KMI), top refiners like Phillips 66 (NYSE:PSX), or major oil-field services companies like Schlumberger (NYSE:SLB). The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. On the other hand, because oil and gas are cyclical commodities, price downturns can drive smaller oil and gas companies into bankruptcy. Subscriber Agreement & Terms of Use Two major tailwinds couldn't boost risk sentiment. He seeks growth and value stocks in the U.S., in Germany, and beyond! Amazon's move is a direct shot across the bow at Stitch Fix. Have Watchlists? Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The oil and gas penny stock universe is comprised of small companies involved in the exploration, extraction, refining, and transportation of oil and gas products. Every day TheStreet Ratings produces a list of the top rated stocks. That trend continued until 2008: A growing global population needed more gasoline for its cars and natural gas for heating its homes. GM sales fall in Q3, but auto maker sees 'signs of recovery', Costco Can Keep Winning, but the Stock Is Pricey, S&P 500 closes about 87 points or 3.1% lower, Why commodities and gold won’t protect you from inflation’s punch, To make money in oil, listen to prices more than news, After oil stocks’ big gains, it’s time to sell, With oil rising, the most lucrative investment may be U.S. shale producers, Saudi Arabia takes aim at U.S. oil stockpiles, Oil prices, up 13% in only seven days, can extend their gains, Falling oil prices could torpedo Trump’s promise to create jobs, Shell, CNR to buy Canadian unit from Marathon Oil, You’re not going to like these predictions for mutual funds and ETFs, Oil countries’ production cut has funny numbers, Oil ETFs on track for best weekly gain in 16 months, This ETF has jumped sevenfold since the start of the bull market, Oil and energy ETFs sink ahead of pivotal OPEC summit, Oil ETFs and energy stocks all tumble ahead of OPEC meeting, Oil Market’s Crisis Spreads to Individual Investors, Exchange-Traded Notes Are Dealt Another Blow, U.S. rig count plunges again in sixth straight weekly drop, Crude up 16% as Norway adds to global supply cuts, Oil bounces as Goldman starts to see positives in energy sector, Oil: Global Crude Storage Builds In April Are Nowhere Near Analyst Estimates, 'In A Stock Market Like This, Anything Could Cause The Next Panic', Crude off another 20% in overnight action, U.S. crude settles below $13/bbl as rising glut scares investors, Oil: Every Investor Needs To Consider These Factors, Bearish Thesis For Oil Tankers Is Absolutely Ridiculous, Weekly Energy Recap: Wake-Up Call For The Oil Industry, MacroView: The Oil Price Crash Was Inevitable, WTI Weekly: Financialization Strikes Again As Historic Collapse Unfolds To 6.50s Where Major Support Formed, USO, GDXJ, NUGT and JNUG among weekly ETF movers, Barclays Announces Upcoming Ticker Changes for iPath ® Pure Beta Crude Oil ETNs (ticker: OLEM).

Oil stocks are getting a boost for the same reason most stocks are today: positive news on the jobs front. Certainly the global oversupply problem isn't going anywhere. View Profiles of these companies.

Get the latest Oil price (CL:NMX) as well as the latest futures prices and other commodity market news at Nasdaq. In 2020 Tesla became the largest car company in the world by market cap despite selling only battery-electric vehicles. Global production rose to meet that demand, and new pipelines, refineries, and export terminals were built to handle the increased production. Oil Market’s Crisis Spreads to Individual Investors Apr.

Please upgrade to one of the following browsers: Access insights and guidance from our Wall Street pros. Oil ETFs and energy stocks all tumble ahead of OPEC meeting Nov. 29, 2016 at 10:05 a.m. Shares of avocado producer Mission Produce soar 18% as trading begins. Privacy Notice and No stock is completely safe, of course.

The Index is intended to reflect the returns that are potentially available through an unleveraged investment in the futures contracts in the Crude Oil markets. Cookie Notice. The Fund seeks to be linked to the Barclays Capital WTI Crude Oil Pure Beta TR Index (the "Index"). Copyright © 2020 MarketWatch, Inc. All rights reserved. While each segment has a specific set of risk factors, the overall business is both cyclical and volatile. Visit a quote page and your recently viewed tickers will be displayed here. That said, the industry also has some negative features that increase risk for investors: Given all these factors, oil and gas is a comparatively risky sector. They crashed again in March 2020, as a result of the Saudi Arabia-Russia price war, and stayed depressed for months amid a drop in demand caused by the coronavirus pandemic.


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