Latest news with #energystocks
Yahoo
23-07-2025
- Business
- Yahoo
Why Analysts Favor The Unloved Energy Stocks
Although the outlook on oil prices and demand has become increasingly uncertain in recent months, analysts continue to recommend the underperforming energy stocks as a good bet for investors. Energy has the highest share of the stocks with 'buy' recommendations of all 11 sectors of the S&P 500, according to ratings from Wall Street analysts compiled by Bloomberg. Many experts cite the cheap valuations of the energy sector and the pro-oil and gas policies of the Trump Administration as key drivers of future stock growth. Moreover, energy commodities could offer protection against inflation, which could accelerate due to President Trump's chaotic on-and-off trade and tariff policies. 'Historically, energy generated the strongest real returns across assets when inflation surprised to the upside,' Goldman Sachs said last year. The investment bank's analysis found that inflation surprises to the upside usually boost real returns for commodities, and lower returns for equities and bonds. This summer, Wall Street analysts believe that energy stocks can stage a rebound in the coming energy sector in the S&P 500 index boasts the highest proportion of stocks rated 'buy' by analysts—74%, per the data compiled by Bloomberg. Information technology is the second most recommended sector, with 65% of stocks rated 'buy' by analysts. The average for all S&P sectors is about 50% buy-rated stocks. This suggests that the Street is more bullish on energy overall than on Big Tech as a whole. A key reason for this is that the energy sector looks very cheap in terms of stock price to earnings ratio. It's actually the cheapest of all 11 sectors. 'The thesis that some people have is that multiples and valuations are very, very low right now,' Leo Mariani, analyst at Roth Capital Partners, told Bloomberg in an interview. Low valuations and the past underperformance are setting the stage for a comeback of the oil and gas stocks, according to analysts. For example, sell-side analysts forecast energy stocks will grow by about 16% over the next 12 months, double the expected rise of the S&P 500 index, and the second-highest growth rate among the 11 sectors, trailing only behind health care, Bloomberg's data show. So far this year, the energy sector has underperformed the S&P 500, with a gain of 3.16% year to date, compared to a 7.3% rise for the broader index as of July 22. The Oil & Gas E&P subsector has underperformed even more, losing 6.52% year to date. The 1-year return for the subsector is a negative 16.95%, compared to a 14.62% return of the S&P 500. Despite the Street's bullish view on the energy sector, investors seem unconvinced. Uncertainty about oil demand and prices is trumping the power of the inflation hedge attributed to commodities. Moreover, fluctuating and lower oil prices would stifle earnings at oil and gas companies. 'Earnings growth might struggle if oil prices continue to fall on the heels of both relatively weak demand and a continued recovery in supply,' analysts at the Schwab Center for Financial Research (SCFR) wrote last week in a monthly outlook on the 11 S&P 500 sectors. 'While Energy tends to be cyclical and to do well when the Federal Reserve is cutting rates slowly, global commodity prices (particularly oil) fall under pressure if growth continues to slow.' SCFR has had a Marketperform rating on all sectors since the first major tariff blitz in early April. 'Until we have more clarity on trade policy we are cautious about asserting an Outperform or Underperform view on any sector,' the analysts wrote. Major oil companies themselves have warned of lower earnings for the second quarter on the back of the decline in oil and gas prices compared to early this year and this time last year. By Tsvetana Paraskova for More Top Reads From this article on
Yahoo
14-07-2025
- Business
- Yahoo
Peabody Energy Extends Helensburgh Mine Lockout Amid Union Dispute Over Wages, Job Protection
Peabody Energy Corporation (NYSE:BTU) is one of the best low priced energy stocks to buy now. On June 26, Peabody Energy extended a lockout at its Helensburgh underground coal mine in New South Wales, Australia. This decision came after workers, members of Australia's Mining and Energy Union/MEU, staged a 1-hour protected industrial action demanding improved wages and job protection. Peabody notified MEU members on the night of June 25 that the lockout, which began on June 18 earlier, would continue until July 6. This means workers at the Metropolitan Mine (Helensburgh) were locked out without pay for ~3 weeks. A coal miner in a thick protective suit and helmet drilling for coal under bright lights. A Peabody spokesperson stated that the extension of their lawful action was to match the union's extended strike action notification period. However, the MEU has condemned this as a disproportionate response, urging the Federal Government to overhaul workplace laws that permit such employer actions against workers exercising their right to bargain. Peabody Energy Corporation (NYSE:BTU) engages in coal mining business. While we acknowledge the potential of BTU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Effettua l'accesso per consultare il tuo portafoglio
Yahoo
10-07-2025
- Business
- Yahoo
Antero Resources (AR) Falls Amid a Drop in Natural Gas Prices
The share price of Antero Resources Corporation (NYSE:AR) fell by 9.09% between June 30 and July 8, 2025, putting it among the Energy Stocks that Lost the Most This Week. Aerial view of a natural gas production facility with travelling pipelines extending from it. Antero Resources Corporation (NYSE:AR) is an independent natural gas and liquids company operating in the Appalachian Basin. The company is the most integrated natural gas and NGL business in the US and one of the largest suppliers to the country's LNG market. Antero Resources Corporation (NYSE:AR) fell this week following a drop in the price of natural gas, with US natural gas futures dropping by over 22% since June 19 due to rising supply and strong storage levels. However, natural gas supply to LNG facilities remains strong as plants recover from maintenance and unplanned outages. On a positive note, analysts maintain a positive view on Antero Resources Corporation (NYSE:AR), with JP Morgan raising the stock's price target from $44 to $49, while maintaining an 'Overweight' rating. At the same time, Barclays also raised AR's price target to $43 from $38, while keeping an 'Equal Weight' rating on its shares. While we acknowledge the potential of AR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and The 5 Energy Stocks Billionaires are Quietly Piling Into Disclosure: None.
Yahoo
09-07-2025
- Business
- Yahoo
Dividend Yields Are Near Record Lows. Here's Where You Can Lock in a Bigger Payday.
The S&P 500's dividend yield is getting down to its record low. Several sectors still offer attractive dividend yields. Many top real estate and energy stocks offer lower-risk, high-yielding payouts. 10 stocks we like better than Brookfield Renewable › With stocks in rally mode in recent months, the S&P 500's dividend yield is declining. It's approaching 1.2%, which is near its record low, last hit in 2000. Because of that, investors aren't generating as much dividend income on new investments these days. However, while most stocks are currently offering a paltry amount of dividend income, there are some places where you can lock in a bigger payout. Real estate and energy currently offer much higher dividend yields (3.4% on average). Because of that, they're great spots to go shopping if you want to lock in a bigger payday. For perspective, a $1,000 investment would generate $34 of annual dividend income at a 3.4% yield, while only producing $12 at a 1.2% yield. Here are some top income stocks for those seeking higher yields without incurring additional risk to consider. Many energy stocks currently have higher dividend yields. Several offer the opportunity to generate income without the exposure to volatile energy prices. For example, Kinder Morgan (NYSE: KMI) currently has a dividend yield above 4%. The natural gas pipeline giant backs that high-yielding payout with a very strong financial profile. Take-or-pay contracts and commodity price hedges lock in 69% of its cash flows, while fee-based contracts provide another 26% of its earnings. Meanwhile, Kinder Morgan pays out a conservative portion of its stable cash flow in dividends (44% of its cash flow from operations in 2025). This low payout ratio enables it to retain substantial excess free cash flow to invest in expansion projects, and its expansion investments grow its cash flow, which enables Kinder Morgan to increase its dividend. It delivered its eighth straight annual dividend increase this year. Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) is another excellent income stock in the energy sector. The stock of the leading global renewable energy company currently yields around 4.5%. It backs that high-yielding payout with very stable cash flow. Brookfield sells the bulk of the power it produces under long-term fixed-rate power purchase agreements (90% for an average of 14 years). Most of those agreements link power rates to inflation (70% of its revenue). That provides it with stable and growing cash flow to support its growing dividend. Brookfield also invests capital into developing and acquiring additional renewable energy assets. Those growth catalysts drive the company's view that it can increase its dividend by 5% to 9% annually. Brookfield has grown its payout at a 6% compound annual rate since 2001. The real estate investment trust (REIT) sector is also fertile ground for dividend income. Many REITs generate stable cash flow backed by long-term leases. NNN REIT (NYSE: NNN) currently yields over 5%. The REIT focuses on owning freestanding retail properties secured by triple net (NNN) leases. Those leases require tenants to cover all property operating costs, including routine maintenance, real estate taxes, and building insurance. NNN REIT pays out a conservative percentage of its stable income via dividends, which allows it to continue acquiring income-producing retail properties. The REIT's steadily expanding portfolio has enabled it to routinely increase its dividend. Last year, it hit the milestone of 35 consecutive years of increasing its payout. Mid-America Apartment Communities (NYSE: MAA) has a dividend yield of around 4%. The apartment landlord generates stable and growing rental income, driven by strong demand for rental properties in the Sun Belt region where it operates. Mid-America pays out a conservative portion of its rental income, enabling it to retain cash to fund new apartment investments (acquisitions and development projects). Those growth drivers enable the REIT to routinely increase its dividend. It has hiked its dividend for 15 straight years. While the average dividend yield on most stocks is down near an all-time low these days, there are still several places to hunt for more dividend income. Many energy stocks and REITs currently offer significantly higher dividend yields without incurring additional risk. Because of that, they're great stocks to buy for those seeking a bigger income payday. Before you buy stock in Brookfield Renewable, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Renewable wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Kinder Morgan, and Mid-America Apartment Communities. The Motley Fool has positions in and recommends Kinder Morgan and Mid-America Apartment Communities. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy. Dividend Yields Are Near Record Lows. Here's Where You Can Lock in a Bigger Payday. was originally published by The Motley Fool
Yahoo
09-07-2025
- Business
- Yahoo
Dividend Yields Are Near Record Lows. Here's Where You Can Lock in a Bigger Payday.
The S&P 500's dividend yield is getting down to its record low. Several sectors still offer attractive dividend yields. Many top real estate and energy stocks offer lower-risk, high-yielding payouts. 10 stocks we like better than Brookfield Renewable › With stocks in rally mode in recent months, the S&P 500's dividend yield is declining. It's approaching 1.2%, which is near its record low, last hit in 2000. Because of that, investors aren't generating as much dividend income on new investments these days. However, while most stocks are currently offering a paltry amount of dividend income, there are some places where you can lock in a bigger payout. Real estate and energy currently offer much higher dividend yields (3.4% on average). Because of that, they're great spots to go shopping if you want to lock in a bigger payday. For perspective, a $1,000 investment would generate $34 of annual dividend income at a 3.4% yield, while only producing $12 at a 1.2% yield. Here are some top income stocks for those seeking higher yields without incurring additional risk to consider. Many energy stocks currently have higher dividend yields. Several offer the opportunity to generate income without the exposure to volatile energy prices. For example, Kinder Morgan (NYSE: KMI) currently has a dividend yield above 4%. The natural gas pipeline giant backs that high-yielding payout with a very strong financial profile. Take-or-pay contracts and commodity price hedges lock in 69% of its cash flows, while fee-based contracts provide another 26% of its earnings. Meanwhile, Kinder Morgan pays out a conservative portion of its stable cash flow in dividends (44% of its cash flow from operations in 2025). This low payout ratio enables it to retain substantial excess free cash flow to invest in expansion projects, and its expansion investments grow its cash flow, which enables Kinder Morgan to increase its dividend. It delivered its eighth straight annual dividend increase this year. Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) is another excellent income stock in the energy sector. The stock of the leading global renewable energy company currently yields around 4.5%. It backs that high-yielding payout with very stable cash flow. Brookfield sells the bulk of the power it produces under long-term fixed-rate power purchase agreements (90% for an average of 14 years). Most of those agreements link power rates to inflation (70% of its revenue). That provides it with stable and growing cash flow to support its growing dividend. Brookfield also invests capital into developing and acquiring additional renewable energy assets. Those growth catalysts drive the company's view that it can increase its dividend by 5% to 9% annually. Brookfield has grown its payout at a 6% compound annual rate since 2001. The real estate investment trust (REIT) sector is also fertile ground for dividend income. Many REITs generate stable cash flow backed by long-term leases. NNN REIT (NYSE: NNN) currently yields over 5%. The REIT focuses on owning freestanding retail properties secured by triple net (NNN) leases. Those leases require tenants to cover all property operating costs, including routine maintenance, real estate taxes, and building insurance. NNN REIT pays out a conservative percentage of its stable income via dividends, which allows it to continue acquiring income-producing retail properties. The REIT's steadily expanding portfolio has enabled it to routinely increase its dividend. Last year, it hit the milestone of 35 consecutive years of increasing its payout. Mid-America Apartment Communities (NYSE: MAA) has a dividend yield of around 4%. The apartment landlord generates stable and growing rental income, driven by strong demand for rental properties in the Sun Belt region where it operates. Mid-America pays out a conservative portion of its rental income, enabling it to retain cash to fund new apartment investments (acquisitions and development projects). Those growth drivers enable the REIT to routinely increase its dividend. It has hiked its dividend for 15 straight years. While the average dividend yield on most stocks is down near an all-time low these days, there are still several places to hunt for more dividend income. Many energy stocks and REITs currently offer significantly higher dividend yields without incurring additional risk. Because of that, they're great stocks to buy for those seeking a bigger income payday. Before you buy stock in Brookfield Renewable, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Renewable wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Kinder Morgan, and Mid-America Apartment Communities. The Motley Fool has positions in and recommends Kinder Morgan and Mid-America Apartment Communities. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy. Dividend Yields Are Near Record Lows. Here's Where You Can Lock in a Bigger Payday. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
