Energy stocks are cooling somewhat on Tuesday after a dramatic over-the-weekend attack on Saudi oil facilities. The cool down has come after word production capacity could be restored more quickly than originally anticipated. But regardless of what happens to oil production, one thing is clear: The tensions in the Persian Gulf aren’t going to go away anytime soon.
This is especially true given that Iran is still unhappy with the Trump Administration’s super tough economic sanctions. And Iran is likely to lash out further until it gets a response.
As a result, U.S. shale oil looks set to fill in the supply gaps as needed — providing a meaningful boost to the sector which has been on the defensive since oil prices peaked in 2014. Here are five cheap, small-cap energy stocks that are worth a look:
Energy Stocks to Buy:
Whiting Petroleum (WLL)
Whiting Petroleum (NYSE:WLL) stock is challenging its 50-day moving average again, threatening to end the downtrend that has been in place since April. A breakout should give way to a run at the 200-day moving average, which would be worth a double from here.
The company will next report results on Oct. 30 after the close. Analysts are looking for earnings of 5 cents per share on revenues of roughly $446.4 million. WLL stock was recently upgraded by analysts at KeyBanc.
Denbury Resources (DNR)
Denbury Resources (NYSE:DNR) stock is rounding nicely from a multi-month consolidation range, setting up a move above its 200-day moving average. Shares of the shale producer fell from a high near $7 in the summer of 2018 before finding support near the lows set in 2016 and 2017 near the $1 mark.
The company will next report results on Nov. 6 before the bell. Analysts are looking for earnings of 10 cents per share on revenues of $329.4 million.
Callon Petroleum (CPE)
Callon Petroleum (NYSE:CPE) stock has risen up and over its 50-day moving average, setting up a run at its 200-day average, which would be worth a gain of nearly 30% from here. Watch for an eventual run at the late 2018 highs near $12, which would be worth more than a double from here.
The company will next report results on Nov. 5 after the close. Analysts are looking for earnings of 19 cents per share on revenues of $161.4 million.
Oasis Petroleum (OAS)
Oasis Petroleum (NYSE:OAS) stock is also pushing above its 50-day moving average and closing in on its 200-day average. This marks a return to the trading range that was in play throughout much of the year. Shares are trading well off of the levels seen in the summer of 2018 near $14. A return to those heights would be worth a 3x gain from here.
The company will next report results on Nov. 5 after the close. Analysts are looking for a breakeven result on revenues of $512.5 million.
Nabors Industries (NBR)
Nabors Industries (NYSE:NBR) stock is trying to push up and over its 200-day moving average, looking to return to the highs seen back in April. If it reaches this level, it would be worth nearly a double from here. Shares have double-bottomed near $2 over the past two years, so a solid base of support has been formed that should control it.
The company will next report results on Oct. 28 after the close. Analysts are looking for a loss of 21 cents per share on revenues of $800.6 million.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.