HES Stayed Above Its 50-Day Average ahead of Its Earnings Release



Hess’s 50-day moving average

On January 28, Hess Corporation (HES) stock closed 2.5% above its 50-day moving average. On January 17, the stock decisively broke above this key moving average for the first time in more than three months. The company’s 50-day moving average could be an important support zone during its fourth-quarter earnings results on January 30.

Based on analysts’ consensus estimates, Hess could report EPS of -$0.34 in the fourth quarter compared to its adjusted EPS of $0.38 in the third quarter. However, the fall in its earnings may have already been priced into its stock price, which plunged 13.5% on average in the fourth quarter compared to the third quarter. In the same period, oil prices fell 14.7% on average in the quarter.

Since December 12, the stock’s 50-day moving average has been below its 200-day moving average. In technical terms, this crossover is called a “death cross.” Usually, a death cross is followed by more weakness. The crossover could pressure Hess’s stock price.

On January 28, Hess closed 6.9% above its 20-day moving average. On the same day, its stock closed 10.6% below its 100-day moving average.

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Peers’ moving averages

As of January 28, Apache (APA), Marathon Oil (MRO), Cimarex Energy (XEC), and Newfield Exploration (NFX) are trading 2.1%, 1.9%, 2.1%, and 9.2% below their 50-day moving averages, respectively. The S&P 500 Index (SPY) is trading 2.6% below its 50-day moving average, and Brent crude oil active futures are trading just 0.6% above their 50-day moving average.

All of these upstream stocks make up part of SPY.


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