These Oil Stocks Are Near Buy Points As Sector Rally Continues

The rally in energy stocks didn’t start with the Iran conflict, but this week’s gains have clearly strengthened the sector. That’s left relatively few oil stocks that are still actionable.

The energy sector started climbing at the start of the year, prodded by the U.S. intervention in Venezuela on Jan. 3, and even farther back for some industry groups such as oil equipment. Today, IBD’s Energy sector is up nearly 18% year to date, the sixth-best of 33 sectors.

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Energy ETFs also are extended, although Alerian MLP (AMLP), a pipeline and infrastructure fund, is nearing a 53.24 buy point. Global X MLP (MLPA), another pipeline fund, is close to a 54.53 entry. Both have been rallying for many weeks and could benefit from a handle forming on their charts. Also, Etracks Alerian MLP (MLPB) is slightly above a 28.96 buy point.

Actionable Oil Stocks

Here are the most actionable energy stocks, at least among higher-liquidity names:

Vista Energy (VIST) is rising past a 62.42 alternate buy point. The relative strength line is making new highs, which adds a bullish tinge to the chart action. The company, which operates in Argentina, has a 98 Composite Rating and 99 EPS Rating, making it one of the highest-rated leaders in the energy sector.

Both of those ratings are the highest in the international exploration and production industry group. EPS growth jumped 169% and 113% the past two quarters, while sales growth ranged from 38% to 54% the past four quarters, according to IBD MarketSurge.

Vista stock has a fairly calm 21-day average true range (ATR) of 3.65%. The average true range, available on IBD MarketSurge, gauges the characteristic breadth of a stock’s behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.

Ecopetrol (EC), the Colombia-based oil company, is nearing the 13.27 buy point of a flat base. The relative strength line is already making new highs, a bullish signal. The fundamentals, however, are not high-quality, with an EPS Rating of 41 and SMR Rating of D. This would be a play on the oil rally more than the company’s growth outlook. It has a 3.86% ATR.

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Other Actionable Oil Stocks

Golar LNG (GLNG) has been choppy since it cleared the 45.98 buy point of a cup base this week. But the stock is holding above the entry and is in buy range to 48.28. The provider of floating liquefied natural gas platforms has a 98 Composite Rating and 3.14% ATR.

Several stocks in the U.S. exploration and production industry group are in buy zones.

BKV (BKV), CNX Resources (CNX), Range Resources (RRC), Coterra Energy (CTRA) and Black Stone Minerals (BSM) also have Composite Ratings above 90. Antero Resources (AR) has an 82 Composite and traded above the 38.17 early entry of a long consolidation.

Gulfport Energy (GPOR) is forming an irregular base and has been trading near the 216.22 buy point. The producer of mostly natural gas in the Appalachia and Anadarko basins has a 91 Composite score and 4.33% ATR.

Murphy Oil (MUR) is trying to break out of a cup-with-handle base. Shares were slightly below the 34.58 buy point Friday. The RS line is near new highs. But the company’s fundamentals are weak, with an EPS Rating of 32 and SMR Rating of D. The stock has Composite of 69 and ATR of 4.92%.

Oil Stocks To Watch

Knot Offshore Partners (KNOP) is forming a firm-looking flat base with an 11.15 buy point. It has a perfect 99 Composite Rating, thanks largely to a rally of about 70% since May and a turnaround back to profits the past four quarters. The relative strength line is at new highs. Scotland-based Knot operates tanker ships that shuttle crude oil from offshore platforms to onshore plants or other tankers. The stock has a 2.18% ATR.

In the refining and gas stations industry group, Delek U.S. Holdings (DK) is attempting to break out above a 43.50 buy point. Shares were slightly below the entry Friday afternoon and could be needing a further pullback after rushing higher as much as 33% in two weeks. Delek, which owns refineries and transportation assets, has a 95 Composite Rating and 6.38% ATR.

Among oil majors, BP (BP) is rising past the 39.51 entry of an alternate buy point following more than three weeks of sideways action. The stock’s RS line has been leading it to new highs. The British oil giant has a 76 Composite and 2.7% ATR.

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Cheniere Energy (LNG) is near the 257.65 buy point of a 59-week pattern. But resistance around 245 provided a better entry. Shares traded around 258 Friday afternoon. The Composite Rating is 95 and the ATR is 2.93%.

Permian Basin Royalty (PBT) is in buy range from the 20.46 buy point of a 14-week cup base. The buy zone goes to 21.48. The RS line is near new highs. The Dallas-based holder of interests in oil and gas properties has a 90 Composite Rating and ATR of 3.61%.

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