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Don't Overlook These 3 Energy Stocks With Stellar EPS Growth
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We know that Oil – Energy stocks can take a sudden turn for the good (or bad), making stock picking a risky game. Let’s look at three stocks — TechipFMC plc (FTI - Free Report) , Murphy USA (MUSA - Free Report) and Sunoco LP (SUN - Free Report) — with substantial EPS growth over the last few years, which investors may want to consider at the current levels.
TechipFMC: While many energy companies are struggling with volatility in energy prices in the current market environment, TechipFMC is at the top of the list of stocks to have reached “Buy” territory.
This UK-headquartered company, in its current form, came into existence following the January 2017 merger between Technip and FMC Technologies. TechnipFMC is a manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry.
Zacks Rank #2 (Buy) TechnipFMC’s stock price has trended higher in the recent past, with its valuation also supporting that there could be more upside. Trading around $26 a share and with 15.15X forward earnings, FTI stock trades well below its historical median of 18.48X.
TechnipFMC has plunged 51.7% in a decade but has climbed 29% over the last 12 months, essentially in line with the benchmark S&P 500 Index. FTI earnings are expected to almost triple for 2024 and increase another 41.6% in 2025 to $1.90 per share. As a matter of fact, 2024 could witness an attractive 217% increase from the 2019 adjusted EPS of 60 cents a share.
Image Source: Zacks Investment Research
Murphy USA: Another candidate for attractive EPS growth is Murphy USA. It belongs to the Zacks Oil and Gas - Refining & Marketing industry.
It is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA currently has a Zacks Rank #3 (Hold).
Trading at a little under $492 per share and 18.66X forward earnings, MUSA has a VGM Score of B. The company trades 23% below its decade high of 24.35X, though it is a tad over the median of 16.31X.
Image Source: Zacks Investment Research
Murphy USA is now up 818% over the last decade to comprehensively beat the S&P 500’s increase of 195%. But the stock has lost 3.6% over the last month, underperforming the benchmark during the period. In other words, Murphy USA shares appear to be oversold at the moment, considering its strong fundamentals and valuation.
MUSA earnings are forecast to decline 5.1% in 2024 to $24.20 per share. However, that would still be an outstanding 360% increase from the 2019 adjusted EPS of $5.26 a share.
Sunoco LP: Rounding out the list is Sunoco LP, which participates in the transportation and supply phase of the U.S. petroleum market across a number of states. It also focuses on motor fuel distribution to convenience stores, independent dealers and commercial customers.
Sunoco carries a Zacks Rank of 3, with earnings estimates for 2024 moving up 27% over the last 60 days. Moreover, trading at $53.51 per share and 7.53X forward earnings, SUN trades far more conservatively compared to its 10-year high of 30.65X and the median of 11.62X.
While Sunoco stock lost 1.8% over the last decade, it has climbed 44.6% in the last three years alone to crush the S&P 500’s rise of 27.4%.
Sunoco's earnings are anticipated to jump 154.2% in 2024. What’s more impressive is that this year’s projected earnings of $9.29 per share are likely to see a neat 229% increase over the last five years, with 2019 EPS at $2.82 a share.
Sunoco EPS
Image Source: Zacks Investment Research
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We know that Oil – Energy stocks can take a sudden turn for the good (or bad), making stock picking a risky game. Let’s look at three stocks — TechipFMC plc (FTI - Free Report) , Murphy USA (MUSA - Free Report) and Sunoco LP (SUN - Free Report) — with substantial EPS growth over the last few years, which investors may want to consider at the current levels.
TechipFMC: While many energy companies are struggling with volatility in energy prices in the current market environment, TechipFMC is at the top of the list of stocks to have reached “Buy” territory.
This UK-headquartered company, in its current form, came into existence following the January 2017 merger between Technip and FMC Technologies. TechnipFMC is a manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry.
Zacks Rank #2 (Buy) TechnipFMC’s stock price has trended higher in the recent past, with its valuation also supporting that there could be more upside. Trading around $26 a share and with 15.15X forward earnings, FTI stock trades well below its historical median of 18.48X.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC has plunged 51.7% in a decade but has climbed 29% over the last 12 months, essentially in line with the benchmark S&P 500 Index. FTI earnings are expected to almost triple for 2024 and increase another 41.6% in 2025 to $1.90 per share. As a matter of fact, 2024 could witness an attractive 217% increase from the 2019 adjusted EPS of 60 cents a share.
Image Source: Zacks Investment Research
Murphy USA: Another candidate for attractive EPS growth is Murphy USA. It belongs to the Zacks Oil and Gas - Refining & Marketing industry.
It is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA currently has a Zacks Rank #3 (Hold).
Trading at a little under $492 per share and 18.66X forward earnings, MUSA has a VGM Score of B. The company trades 23% below its decade high of 24.35X, though it is a tad over the median of 16.31X.
Image Source: Zacks Investment Research
Murphy USA is now up 818% over the last decade to comprehensively beat the S&P 500’s increase of 195%. But the stock has lost 3.6% over the last month, underperforming the benchmark during the period. In other words, Murphy USA shares appear to be oversold at the moment, considering its strong fundamentals and valuation.
MUSA earnings are forecast to decline 5.1% in 2024 to $24.20 per share. However, that would still be an outstanding 360% increase from the 2019 adjusted EPS of $5.26 a share.
Sunoco LP: Rounding out the list is Sunoco LP, which participates in the transportation and supply phase of the U.S. petroleum market across a number of states. It also focuses on motor fuel distribution to convenience stores, independent dealers and commercial customers.
Sunoco carries a Zacks Rank of 3, with earnings estimates for 2024 moving up 27% over the last 60 days. Moreover, trading at $53.51 per share and 7.53X forward earnings, SUN trades far more conservatively compared to its 10-year high of 30.65X and the median of 11.62X.
While Sunoco stock lost 1.8% over the last decade, it has climbed 44.6% in the last three years alone to crush the S&P 500’s rise of 27.4%.
Sunoco's earnings are anticipated to jump 154.2% in 2024. What’s more impressive is that this year’s projected earnings of $9.29 per share are likely to see a neat 229% increase over the last five years, with 2019 EPS at $2.82 a share.
Sunoco EPS
Image Source: Zacks Investment Research