Generally, the ups and downs in oil prices direct the movement of energy stock prices. The following table presents the oil and gas drilling, exploration, and production stocks along with their beta and moving averages.
Below are the yields of the above stocks as of January 26:
- The beta value for these stocks is listed in the table above. A beta value less than one implies that the stocks are less sensitive to the broad market movement and less volatile while a beta value greater than one denotes that the stocks are more sensitive to the market movement and thus more volatile.
- All these stocks traded at prices below their 100-day, 50-day, and 20-day moving averages with the exceptions of EQT and RRC, which traded above its 50-day and 20-day moving averages. SWN traded above its 20-day moving average.
- EQT, RRC, and SWN are the stocks with a beta value less than one. Therefore, these stocks’ movement were less volatile and deviated less from the moving average value.
- Of the stocks mentioned in the table, CHK lost the most, as its trailing-one-year yield was -84.2%.
- The relative strength index (or RSI) of NE is 24, which is the lowest among the above stocks. An RSI below 30 suggests that the stock is undervalued or oversold.
- When compared to the analysts’ stock price target, these stocks show an upside potential of 41% on average.
- On average, these stocks have earned 14 “buy,” 14 “hold,” and four “sell” recommendations.
In the next article, we’ll look at the key stocks of the SPDR S&P 500 ETF (SPY) as of January 26.