Oil prices tumbled below the $100 mark last week as the rising recession worries raised concerns about lower demand for petroleum products. Moreover, Ritterbusch and Associates attributed the move to…
“tightness in global oil balances increasingly being countered by strong likelihood of recession that has begun to curtail oil demand.”
Moreover, gas prices declined to $4.78 per gallon last Wednesday, down 24 cents from its highest-ever level of $5.016 in June, while oil prices plunged 2% to a 12-week low. Energy prices could remain volatile amid the Fed’s tightening monetary policies and the rising recession concerns.
Given the declining energy prices, fundamentally weak oil & gas stocks, Houston American Energy Corp. (HUSA), NextDecade Corporation (NEXT), and Tellurian Inc. (TELL), which currently look bloated, could be best avoided.
Houston American Energy Corp. (HUSA)
HUSA, an independent oil and gas company, engages in the exploration, development, and production of natural gas, crude oil, and condensate in the United States. Its oil and gas properties are located in the Texas Permian Basin, onshore Texas and Louisiana Gulf Coast region, and the South American country of Colombia.
HUSA’s oil and gas revenue came in at $423,820 for the quarter ended March 31, 2022, up 29% year-over-year. However, its cash came in at $4.77 million, down 9.6% year-over-year. Also, its total other income came in at $231, down 97.8% year-over-year.
HUSA’s trailing-twelve-months P/S of 28.84x is higher than the industry average of 1.45x. Its trailing-twelve-months P/Book of 4.02x is 122.1% higher than the industry average of 1.81x.
Over the past month, the stock has slumped 45.1% to close the last trading session at $4.14.
HUSA’s POWR Ratings reflect its poor prospects. It has an overall grade of F, which indicates a Strong Sell. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Also, the stock has an F grade for Value and Quality and a D for Stability and Sentiment. Click here to access the additional POWR Ratings for HUSA (Growth and Momentum). HUSA is ranked #96 out of 97 stocks in the Energy – Oil & Gas industry.
NextDecade Corporation (NEXT)
NEXT engages in the development activities related to the liquefaction and sale of liquefied natural gas (LNG); and capture and storage of CO2 emissions. The company focuses on the development activities of the…
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