With Price Surge, Analysts Hope For Higher Oil Prices In 2018

One of the hallmarks of the past few years has been relatively low energy prices. The US benefits from massive production of oil and gas due to fracking technology and new sources of energy. However, that may be coming to an end where oil is concerned.

Analysts note that prices have surged recently. Today, we saw futures rising to @62/barrel in the US and Brent crude oil futures went up more and are now running @ $69/barrel. Analysts believe that development across the globe will drive prices higher as more people reach for--and achieve a middle-class lifestyle and thus demand for energy increases as well. In fact, some analysts are now predicting oil prices in the range of $80/barrel for 2018.

Of course, higher crude has been promised for years now, and we have not seen anything like the prices which existed prior to the Bush recession and subsequent economic crisis. Low energy prices are one of the reasons we have had issues with deflation during the ensuing decad despite the cries for higher interest rates from central banks.

Below, we present the latest data on Oil/Energy stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category.  We applied some basic liquidity criteria -- share price greater than $3 and average daily volume in excess of 100k shares. 

Top-Five Oil/Energy Stocks--Short-Term Forecast Returns

Ticker

Name

Mkt Price

Valuation (%)

Last 12-M Return (%)

BAK

BRASKEM SA

28.1

85.56%

28.25%

SDLP

SEADRILL PTNRS

3.95

-31.74%

N/A

PBFX

PBF LOGISTICS

21.45

1.80%

6.45%

ORIG

OCEAN RIG UDW

27.96

N/A

-99.85%

UPL

ULTRA PETRO COR

8.54

-63.20%

N/A

Top-Five Oil/Energy Stocks--Momentum

Ticker

Name

Mkt Price

Valuation (%)

Last 12-M Return (%)

IO

ION GEOPHYSICAL

22.3

N/A

294.69%

TGS

TRANSPORTADORA

22.21

N/A

132.32%

EC

ECOPETROL- ADR

16.87

N/A

81.40%

ALDW

ALON USA PTNRS

18.1

N/A

79.74%

CVI

CVR ENERGY INC

39.29

N/A

77.62%

Top-Five Oil/Energy Stocks--Composite Score

Ticker

Name

Mkt Price

Valuation (%)

Last 12-M Return (%)

ANDV

ANDEAVOR CORP

115.99

-2.26%

42.01%

SEP

SPECTRA EGY PTR

41.74

-16.36%

-11.36%

BAK

BRASKEM SA

28.1

85.56%

28.25%

ERF

ENERPLUS CORP

10

-30.29%

12.61%

BWP

BOARDWALK PIPLN

12.97

-44.53%

-29.20%

Top-Five Oil/Energy Stocks--Most Overvalued

Ticker

Name

Mkt Price

Valuation (%)

Last 12-M Return (%)

ESV

ENSCO PLC

7.08

300.00%

-39.49%

BAS

BASIC EGY SVCS

26.28

300.00%

-28.02%

HOS

HORNBECK OFFSHR

3.85

275.89%

N/A

DO

DIAMOND OFFSHOR

19.84

131.57%

3.44%

KEG

KEY ENERGY SVCS

15.38

115.92%

-57.17%

For today's bulletin, we take a look at our leader in the oil industry in terms of short-term forecast return, Braskem SA (BAK). Braskem is the largest petrochemical operation in Latin America and among the five largest private companies in Brazil. With industrial facilities located in Alagoas, Bahia, Sao Paulo and Rio Grande do Sul, Braskem produces primary base petrochemicals such as ethylene, propylene, benzene, caprolactam, DMT and termoplastic resins (polypropylene, polyethylene, PVC and PET) gas and GLP.

ValuEngine continues its STRONG BUY recommendation on Braskem SA for 2018-01-09. Based on the information we have gathered and our resulting research, we feel that Braskem SA has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Company Size.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

28.57 1.21%

3-Month

29.35 3.98%

6-Month

30.45 7.85%

1-Year

32.35 14.60%

2-Year

40.33 42.87%

3-Year

45.51 61.21%

 

Valuation & Rankings

Valuation

86.42% overvalued

Valuation Rank

3

1-M Forecast Return

1.21%

1-M Forecast Return Rank

100

12-M Return

28.85%

Momentum Rank

72

Sharpe Ratio

0.31

Sharpe Ratio Rank

64

5-Y Avg Annual Return

13.53%

5-Y Avg Annual Rtn Rank

76

Volatility

43.58%

Volatility Rank

38

Expected EPS Growth

-40.09%

EPS Growth Rank

5

Market Cap (billions)

11.25

Size Rank

89

Trailing P/E Ratio

6.43

Trailing P/E Rank

98

Forward P/E Ratio

10.73

Forward P/E Ratio Rank

82

PEG Ratio

n/a

PEG Ratio Rank

n/a

Price/Sales

0.75

Price/Sales Rank

78

Market/Book

8.36

Market/Book Rank

19

Beta

1.13

Beta Rank

32

Alpha

0.01

Alpha Rank

61

Disclosure: None.

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