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Integrated Energy Stocks Fall: How Are They Positioned Now?

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Dec. 27 2018, Updated 1:36 p.m. ET

Integrated energy stocks’ returns

In the past month, integrated energy stocks have slumped. In this series, we’ll assess six global integrated energy stocks’ recent movements and where they’re positioned now.

Among those six stocks, Royal Dutch Shell (RDS.A) occupies the top slot, having fallen the least. The stock has dropped 6% in the past month. Meanwhile, Total (TOT) and BP (BP) have fallen 6%–10%, and Chevron (CVX), ExxonMobil (XOM), and Suncor Energy (SU) have fallen more than 10%. All six integrated energy stocks’ 10-day moving averages are below their 30-day moving averages, suggesting short-term bearishness.

Equity market and crude oil price weakness has impacted integrated energy stocks. WTI crude oil prices have fallen 16% in the past month, reaching one-year lows and resulting in lower upstream earnings for integrated energy companies.

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How attractive are these stocks now?

Integrated energy stocks’ slump has affected their valuation and dividend yields, with their valuation falling and dividend yield rising. Shell, Total, and BP have an above-average dividend yield and below-average valuation. However, BP, Chevron, and Suncor have above-average growth estimates for this year.

After the slump, BP stock has been an outlier, with an above-average dividend yield, below-average valuation, and above-average 2018 earnings growth estimate. Meanwhile, high-growth stocks Chevron and Suncor have below-average dividend yields. Let’s begin by looking at Shell, the stock that’s fallen the least in the last month.

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