European Markets Are Cautious before US GDP Data
After a strong pullback on Thursday, the United Kingdom’s FTSE 100 continued to weaken and fell in the morning session on April 28.
After gaining for three consecutive trading days, China’s Shanghai Composite Index lost momentum and closed almost flat on April 28.
The lack of details provided by Trump’s Administration in its new tax cut plan disappointed the market and dented the sentiment.
Why Valero’s Valuations Are Lower despite Its 1Q17 Earnings Beat
Valero Energy (VLO) is currently trading at a forward PE (price-to-earnings ratio) of 12.5x, below its peer average of 15.3x.
Valero (VLO) posted its 1Q17 earnings results on April 25, 2017. On the day, VLO’s implied volatility fell to 17.3%, compared to 22.9% on the previous day. Its stock price fell 1.5%.
Valero has been rated by a total of 21 analysts. Of this total, 12 analysts (or 57%) have given the stock “buy” or “strong buy” ratings, and nine (or 43%) have given it “hold” ratings.
A Look at Shell’s Short Interest before Its 1Q17 Earnings
Royal Dutch Shell (RDS.A) has witnessed an 18% rise in its short interest volumes since mid-March 2017, which usually indicates that bearish sentiment for the stock is strengthening.
Institutional holdings in Royal Dutch Shell (RDS.A) currently stand at ~12%, down from ~13% in January 2017.
Implied volatility in Royal Dutch Shell (RDS.A) currently stands at 15%, which is lower than its 30-day average implied volatility of 18%.
What ExxonMobil’s Sophisticated Investors Think of It
ExxonMobil’s (XOM) institutional holdings currently stand at ~55%.
In this series, we’ll look at Energy Transfer Partners’ 2Q15 operating results, contrast actual numbers against analyst estimates, and compare individual segment contributions.
Energy Transfer Equity (ETE) and Sonoco Logistics (SXL), which are part of the Energy Transfer group, have “buy” ratings from 88.9% and 73.3% of analysts surveyed, respectively.
How Crude Tanker Stocks Have Performed This Year
In this series, we’ll look at Wall Street analysts’ recommendations and ratings for crude tanker companies.
Along with the quarterly rise in 1Q17 revenues, analysts expect a rise in Rowan Companies’ EBITDA (earnings before interest, tax, depreciation, and amortization).
Now, let’s look at what analysts recommend for Rowan Companies’ stock.
How Drilling Permits Trended in March
In March 2017, no drilling permits were issued to drill new wells in the shallow water of the Gulf of Mexico.
In February, two drilling permits were issued to drill a new well in the shallow water of the Gulf of Mexico. In the previous month, one permit was issued.
Despite skepticism about the efficacy of OPEC’s agreement, we think that oil (USO) (UCO) is set to rise in the medium term.
Wall Street Analysts’ Forecasts for Patterson-UTI Energy
On April 27, following its 1Q17 earnings, ~62% of the analysts tracking Patterson-UTI Energy rated it a “buy” or some equivalent.
Patterson-UTI Energy released its financial results for 1Q17 on April 27, 2017. Its stock price fell 4.7% to $21.93 from the closing price on April 26.
From 1Q16 to 1Q17, Patterson-UTI Energy’s Contract Drilling segment revenue fell ~6%. Its Pressure Pumping segment’s revenue rose 47%.
Southern Company: Why Analysts’ Views Changed
Analysts’ consensus price target for Southern Company is $50.78. Its current market price is $49.97, which implies a rise of 1.6% over the next year.
Total shorted shares in Southern Company were 24.3 million on March 31, 2017, and fell to 22.7 million by April 13, 2017.
At $50 billion, Southern Company (SO) has been relatively weak on Wall Street. Currently, Southern Company stock is trading near its levels last year.
How Much Do Ethanol Prices Impact Pacific Ethanol?
Ethanol prices can have a significant impact on ethanol stocks. That’s known as price risk. Companies can mitigate price risk with futures contracts.
In 2014, about half of the corn produced in the United States was used for the production of alcohol for fuel use, primarily ethanol.
Fossil fuels are non-renewable, and a shortage can wreak havoc on the economy. It was the desire for alternative energy that gave rise to the ethanol industry.
Will Yingli Solar Keep Shining in Its Future Earnings?
For 4Q16, Yingli Solar expects its total PV module shipments to be in the range of 600 MW–670 MW—a ~64% quarter-over-quarter rise in its shipments.
For 3Q16, Yingli Solar’s (YGE) interest expenses came in at $24.0 million, as compared to $23.9 million in 2Q16 and $39.7 million in 3Q15.
In 3Q16, Yingli Solar reported a gross profit of $12.0 million, as compared to $69.2 million in 2Q16. On a YoY basis, this is a ~79% fall from 3Q15.
Natural Gas Futures Spread: Should It Worry Traders?
On April 26, 2017, natural gas (UNG) (FCG) (BOIL) (GASL) June 2017 futures were trading at a premium of $0.32 to June 2018 futures contracts.
Between April 19 and April 26, 2017, natural gas (GASX) (FCG) (GASL) June futures fell 0.2%. The US dollar (UUP) (UDN) (USDU) fell 0.7% during that period.
According to data from the EIA released on April 20, 2017, natural gas (GASX) (FCG) (GASL) inventories rose by 54 Bcf during the week ending April 14, 2017.