The stock market retreated in the last trading session with expectations of weak economic data due Wednesday, along with renewed COVID-19 restrictions in China. The S&P 500 index has…
dropped 19.1% year-to-date.
Moreover, Citigroup Inc. (C) analysts forecast the S&P 500 to finish the year at 4,200, cutting their forecast in late June from 4,700. This is still up from its last trading session’s finish, near 3,854. According to a Citi note in late June, “the better than feared earnings and signs of peaking rates set up a positive second half of the year.”
On the other hand, Oppenheimer’s Chief Investment Strategist John Stoltzfus expects S&P 500 to rebound to 4,800. He said, “Even in the face of uncertainty and palpable risks of recession, our longer-term outlook for the US economy and the stock market remains decidedly bullish. We believe US economic fundamentals remain on solid footing. US growth should remain well supported by consumer demand, business investment, and government spending.”
Despite the risk-off environment, some S&P 500 stocks gained momentum owing to their strong fundamentals and solid growth prospects. The stocks have shown significant resilience against market fluctuations and are expected to maintain an upward trend.
Thus, we think investors should consider adding top-performing S&P 500 stocks Occidental Petroleum Corporation (OXY), Hess Corporation (HES), Valero Energy Corporation (VLO), and Exxon Mobil Corporation (XOM) to their portfolio.
Occidental Petroleum Corporation (OXY)
OXY engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. The company operates through three segments: Oil and Gas; Chemical; and Midstream and Marketing.
OXY develops, processes, transports, stores, and markets oil and condensate, natural gas liquids (NGLs), and natural gas. It also manufactures and markets basic chemicals.
On June 27, OXY’s subsidiary, 1PointFive, and Manulife Investment Management entered a lease agreement for approximately 27,000 acres of timberland in Western Louisiana. This agreement provides 1PointFive with access to subsurface pore space and surface rights to develop and operate a carbon sequestration hub, with access to permanently store industrial carbon emissions.
The agreement is expected to promote the company’s sustainability goals and boost its revenues.
OXY’s net sales increased 57.7% year-over-year to $8.35 billion in the fiscal 2022 first quarter ended March 31, 2022. Its income from continuing operations rose 1,530.8% from the prior-year period to $4.88 billion.
The company’s adjusted income attributable to common stockholders and adjusted earnings per share came in at $2.13 billion and $2.12, up 1,664% and 1,513.3%, respectively, year-over-year.
The $9.06 billion consensus revenue estimate for the fiscal 2022 second quarter (ended June 2022) represents a 50.7% improvement from the same period in 2021. Analysts expect OXY’s EPS for the to-be-reported quarter to increase 811.3% year-over-year to $2.92. The company has topped the consensus revenue and EPS estimates in each of the trailing four quarters.
The stock has increased 71.5% over the past six months and 105.3% year-to-date to close the last trading session at $59.52. It is currently trading above its 200-day moving average of $45.47, indicating an upward trend.
OXY’s POWR Ratings reflect this strong outlook. The company has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
OXY has a grade of A for Momentum and a B for Growth and Quality. Within the B-rated Energy-Oil & Gas industry, it is ranked #30 of 97 stocks.
To see additional POWR Ratings (Sentiment, Value, and Stability) for OXY, click here.
Hess Corporation (HES)
HES is an exploration and production company. It explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The company operates through two segments: Exploration and Production; and Midstream. It has total reserves of more than 1,309 million barrels of oil equivalent.
On April 27, HES announced discoveries at Barreleye, Lukanani, and Patwa on the Stabroek Block, offshore Guyana. These discoveries further underpin the development potential of the block. The Gross discovered recoverable resource estimate for Stabroek Block increased to approximately 11 billion barrels of oil equivalent. These discoveries might provide numerous…
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