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EU Blackout Revives Bull Case for Oil Giants and Drillers

Sometimes the market experiences a new turn of events, creating opportunities for investors Who knows what to watch over their markets in the market. Of course, these plays become obvious only when it's too late to act on them. Today, it seems that the opportunity has spread to a multi-year horizon time for the energy sector due to some recent European events.

In the last week of April 2025, Portugal and Spain experienced a power outage due to excessive loyalty to renewable energy. The world realizes that it is too early in the adoption curve to start fully relying on renewable energy such as solar and wind, as most electricity grids around the world are not enough to be developed to withstand this sudden change.

After this event, things about the state of global energy resources became clear. Infrastructure still relies on traditional fossil fuel sources, which leaders like Exxon Mobil Co. NYSE: XOM and other international players such Hess Co. NYSE: Hes Play. They deliver retail investors with a time that may cover many years in the future, and markets seem to know it.

There is still confidence for Exxon Mobil

Exxon Mobil Stock Forecast now

12-month Forecasting of Stock Price:
$ 126.50
Moderate purchase
Based on 22 analyst ratings
Current price $ 106.20
High forecast $ 144.00
Average forecast $ 126.50
Low forecast $ 105.00

Exxon Mobil's Stock Forecast Details

Exxon Mobil's highly awaited quarterly earnings report was released. It showed a better than the expected turnout despite the many months of decline in crude oil prices, which could act as a major headwind for the bottom line revenue per part (EPS).

However, investors may look for a factor to rewrite their confidence in the company's future despite lower oil prices. That factor is the management decision to maintain the company's purchase program despite a slump in energy markets.

In any case, sharing purchases have two implications. First, they mean that the companies of the company believe that stock appreciation is significantly below the noted fair value, creating an opportunity to compound and deploy some of the company's excess free cash flow (operating cash flow minus capital expenditures).

Another implication is that there is a relatively powerful perspective for the higher price ahead, something that agrees with Wall Street analysts. Especially those from Barclays, who reiterate their overweight ratings on Exxon Mobil stock until April 2025, which puts a target appreciation of up to $ 130 per part as well. That's 23% upside down from now.

The capital warms up to the stock of Hess

Hess Stock Forecast right now

12-month Forecasting of Stock Price:
$ 164.46
Moderate purchase
Based on 10 analyst ratings
Current price $ 132.33
High forecast $ 194.00
Average forecast $ 164.46
Low forecast $ 136.00

Details of the Hess Stock Forecast

Understanding that this European blackout event only creates awareness, or a kind of warning, for the current belief that modern economies can share in fossil fuels, some newly prepared consumers will enter Hess Stock just -just. Those from the Bank of New York Mellon decided to boost their Hess stock holdings of almost 22.2% until late April 2024.

This new allocation has brought the bank's net position to a high $ 572.1 million today, but more importantly, it gives investors a new sign of confidence here The future of the stock potential. It seems that consumers of this institution are not united in this sudden realization.

Wall Street's analysts are now comfortable assessing up to $ 3.18 in EPS for Hess entering the last quarter of 2025, a significant boost of 63% from the reported $ 1.95 in EPS. That said, investors should know that wherever the EPS goes, as well as the price of stock, which justifies the main thesis of growth as well as recent institutional purchases.

A worthy mention of the oil breed

Today, these giant industries are some of the obvious options in any uprising for energy. However, other areas of the sector are worth a second view, such as the duties in providing the necessary machinery and equipment for these giants to resolve their oil in the first place.

That is where the drilling equipment manufacturer and leaser Transocean Ltd. NYSE: Rig becomes a reasonable target to consider. Being a smaller company, the transocean provides investors an asymmetrical bet, as the potential downside is severely limited while the upside down promise is greater.

Now that this stock has fallen into a new 52-week low, a risk-to-reward profile will certainly agree to the asymmetric nature today, especially as Wall Street analysts see a target price of consensus of up to $ 4.6 per part, calling almost 98.5% upside down from which the company has fallen to date.

Before you consider Exxon Mobil, you want to hear it.

Marketbeat monitors the top-rated and best conduct of research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. Marketbeat recognized five stocks that the leading analysts were quietly whispering to their clients to buy now before the broader market is getting … and the Exxon Mobil is out of the list.

While Exxon Mobil currently has a moderate purchase rating with analysts, top analysts believe that these five stocks are better to buy.

See five stocks here

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