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Repsol Topped FEZ, Rebounds in Crude Oil Benefitted the Stock

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FEZ’s top stocks

On Wednesday, January 13, 2016, the stocks at the top of the SPDR Euro STOXX 50 ETF (FEZ) were Repsol, Total (TOT), Enel, ENI (EAA), Danone (DANOY), Axa, Airbus (EADSY). These stocks gained 2.5%, 1.6%, 1.5%, 1.2%, 1.1%, 1%, and 0.83%, respectively, on that day. Among all these stocks, Repsol emerged as FEZ’s biggest gainer.

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Reasons behind Repsol’s performance

  • Crude oil recovered marginally in Wednesday’s early trading. The early gain in crude oil prices pushed the stock price up. Most oil and gas stocks gained on that day.
  • Repsol also reported that its operations were still halted on Wednesday at an oil and gas site in Canada. Regulators are investigating the cause of an earthquake in the region.
  • The company also reported a minimal loss to the company because of this earthquake.

Repsol’s returns

Currently, Repsol is trading at 8.82 euros. Its 52-week high is 18.70 euros. Its 52-week low is 9.96 euros. The stock returned -35% in 2015. Its price-to-earnings ratio is 26.64x, which is higher than peers Total (TOT) and ENI (EAA).

Repsol is trading 22% below its 100-day moving average, 21% below its 50-day moving average, and 13% below its 20-day moving average. The 100-day moving average is a strong resistance point for the stock. It hasn’t been able to cross its 100-day moving average in the last six months. Most of the major oil and gas stocks are trading below their short-term moving averages. The United States Oil (USO) is also trading below its 100-day and 50-day moving averages.

Analysts’ estimates indicate an upside of 50% for Repsol over the coming 12-month period from its current levels as of January 13, 2016.

In the next part of this series, we’ll analyze Airbus’s performance on January 13, 2016.

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