Hess’s stock performance
Following Hess’s (HES) 3Q16 earnings release on October 26, the company’s stock fell 1.2%. The stock has fallen ~14% YoY (year-over-year). In this part of the series, we’ll analyze Hess’s stock performance with respect to movements in the broader industry and the broader market.
HES’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (OIL). Along with natural gas prices (UNG), crude oil prices have also been driving the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).
From October 12 to October 26, Hess’s stock was outperforming the Energy Select Sector SPDR ETF (XLE). However, the stock ended up giving lower returns at the end of the period. HES’s stock fell 3.2% overall during the two-week period, whereas XLE fell by 1.1%.
Both XLE and HES both underperformed the SPDR S&P 500 ETF (SPY), the broader market ETF.
HES’s stock fell ~1.2% on October 26, while oil prices fell ~1.6% on the same day. The drop in HES’s stock may have been due to the drop in crude oil prices, and not just to the market’s negative reaction to the company’s lackluster 3Q16 earnings.