It's no coincidence that stocks sold off in the beginning of February, right as the market's level of confidence about the Federal Reserve's upcoming rate increases has grown. The inflation outlook and the outlook for stronger economic growth taken together do point to several rate increases this year.
The latest FOMC minutes revealed that Fed officials are now positive on the economic outlook, with some having "marked up their forecasts for economic growth in the near term relative to those made for the December meeting." Translation: More rate hikes this year. If interest rates rise, they will take a further toll on bonds' market prices down the road.
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The good news is that these rate hikes are conditional on further economic growth. Stronger growth is generally good for stocks, whose valuations depend on the outlook for future earnings. This is why I think higher rates won't necessarily spell doom for equities. With growing profits and higher dividends a distinct possibility, dividend-paying stocks offer the potential for both income and capital gains.
Top 5 Energy Stocks To Buy Right Now: Cliffs Natural Resources Inc.(CLF)
Advisors' Opinion:- [By Ethan Ryder]
An issue of Cleveland-Cliffs Inc (NYSE:CLF) bonds fell 1.1% as a percentage of their face value during trading on Wednesday. The high-yield issue of debt has a 5.75% coupon and will mature on March 1, 2025. The debt is now trading at $95.44 and was trading at $97.00 one week ago. Price changes in a company’s bonds in credit markets often anticipate parallel changes in its stock price.
- [By Tyler Crowe]
For years, iron ore producer Cleveland-Cliffs (NYSE:CLF) has been in the midst of a turnaround plan that has completely transformed the company from a debt-laden business suffering from di-worsification to a much leaner miner focused solely on serving North American steel mills. At times, it looked like a company on the brink of bankruptcy, but those days are behind it, as it has produced some impressive earnings results lately.
- [By Tyler Crowe]
At first glance, Cleveland-Cliffs' (NYSE:CLF) most recent earnings report might make shareholders want to push the sell button as fast as they can open their brokerage accounts. But before you precipitously sour on this iron miner, take a deeper look at its results. Even though its revenue and earnings were down drastically, those declines were largely a product of its moves to shut down unprofitable assets.
Top 5 Energy Stocks To Buy Right Now: Marathon Petroleum Corporation(MPC)
Advisors' Opinion:- [By Jason Hall, Tyler Crowe, and John Bromels]
If you're shopping for great buys in the oil patch right now, three Motley Fool contributors think you should take a close look at tech-heavy but asset-light oilfield services provider Core Laboratories N.V. (NYSE:CLB), value-priced independent oil producer Apache Corporation (NYSE:APA), and refining giant Marathon Petroleum Corp (NYSE:MPC).
- [By Tyler Crowe, Matthew DiLallo, and Reuben Gregg Brewer]
Fortunately for those looking at these attractive valuations, oil's end-of-days scenario is likely a ways down the road. So we asked three Fool.com contributors to highlight a stock they see in the oil industry right now that looks attractive. Here's why they picked Plains All American Pipeline (NYSE:PAA), Marathon Petroleum (NYSE:MPC), and Magellan Midstream Partners (NYSE:MMP).
- [By Tyler Crowe]
Ever since Marathon Petroleum's (NYSE:MPC) IPO back in 2012, the company has gone from being a mid-sized independent oil refiner with some retail holdings to becoming the nation's largest refiner with an extensive network of retail stations and two large logistics subsidiaries. This past quarter was the culmination of that work, as the company completed the acquisition of Andeavor -- formerly Tesoro, Western Refining, and Northern Tier Refining. Based on the most recent results, investors should be pleased that management decided to do this deal.
- [By Matthew DiLallo]
On top of that, MPLX's parent company, oil refiner Marathon Petroleum (NYSE:MPC), announced that it plans to acquire fellow refiner Andeavor (NYSE:ANDV), which owns not only some midstream assets but MLP Andeavor Logistics (NYSE:ANDX). While Marathon currently plans to operate Andeavor Logistics as a stand-alone entity, it makes sense to eventually merge that company into MPLX. If that happens, it would further enhance MPLX's income stream and growth prospects, increasing the likelihood that the company can continue boosting its 7.1%-yielding payout each quarter.
Top 5 Energy Stocks To Buy Right Now: CVR Refining, LP(CVRR)
Advisors' Opinion:- [By Logan Wallace]
CVR Refining LP (NYSE:CVRR) declared a quarterly dividend on Wednesday, July 25th, NASDAQ reports. Stockholders of record on Monday, August 6th will be given a dividend of 0.66 per share by the oil and gas company on Monday, August 13th. This represents a $2.64 annualized dividend and a dividend yield of 12.25%. The ex-dividend date of this dividend is Friday, August 3rd. This is a positive change from CVR Refining’s previous quarterly dividend of $0.51.
- [By Dan Caplinger]
Finally, shares of CVR Energy fell 9%. The holding company agreed to exchange its stock to investors in related entity CVR Refining (NYSE:CVRR), accepting as many as 37.1 million units at a ratio of 0.6335 shares of CVR Energy for every unit of CVR Refining exchanged. In a release, CVR Energy said that "many CVR Refining unitholders may wish to hold their investment in the form of common stock rather than partnership interests" after recent tax reform legislation. But it's unclear why CVR Energy would make an offer at a 25% premium rather than simply having CVR Refining convert to a corporate entity or use similar steps that wouldn't adversely affect CVR Energy shareholders for the benefit of CVR Refining unitholders. CVR Refining finished the session 8% higher.
- [By Lisa Levin] Gainers Acacia Communications, Inc. (NASDAQ: ACIA) shares rose 18.3 percent to $37.25 in pre-market trading after gaining 1.74 percent on Friday. Kitov Pharma Ltd (NASDAQ: KTOV) rose 12.1 percent to $2.69 in pre-market trading after surging 4.80 percent on Friday. NXP Semiconductors N.V. (NASDAQ: NXPI) rose 10.9 percent to $109.75 in pre-market trading after Bloomberg reported that the China’s Commerce Ministry has restarted its review of QUALCOMM Incorporated’s (NASDAQ: QCOM) proposed takeover of NXP Semiconductors. Renewable Energy Group, Inc. (NASDAQ: REGI) rose 10.6 percent to $15.20 in pre-market trading. Renewable Energy will replace Synchronoss Technologies Inc. (NASDAQ: SNCR) in the S&P SmallCap 600 on Tuesday, May 15. NeoPhotonics Corporation (NYSE: NPTN) rose 10 percent to $6.40 in pre-market trading. Vaxart, Inc. (NASDAQ: VXRT) shares rose 8 percent to $5.54 in pre-market trading after gaining 2.19 percent on Friday. Profire Energy, Inc. (NASDAQ: PFIE) rose 7.3 percent to $4.58 in pre-market trading after gaining 6.22 percent on Friday. Marvell Technology Group Ltd. (NASDAQ: MRVL) rose 7 percent to $22.49 in pre-market trading after falling 1.96 percent on Friday. Oclaro, Inc. (NASDAQ: OCLR) shares rose 6.9 percent to $9.16 in pre-market trading. TransEnterix, Inc. (NYSE: TRXC) rose 5.7 percent to $2.24 in pre-market trading after gaining 3.92 percent on Friday. CVR Refining, LP (NYSE: CVRR) rose 5.4 percent to $19.70 in pre-market trading. Federal Agricultural Mortgage Corporation (NYSE: AGM) rose 5.2 percent to $92.95 in pre-market trading. International Game Technology PLC (NYSE: IGT) rose 5.2 percent to $29.94 in pre-market trading. Lumentum Holdings Inc. (NASDAQ: LITE) shares rose 5.1 percent to $66.30 in the pre-market trading session. Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) shares rose 5 percent to $10.70 in pre-market trading after climbing 15.66 percent on Friday. Finisar
- [By ]
The Big Boys' Pick
Of the group, CVRR (NYSE: CVRR) is in the best position. Apparently, Mr. Icahn agrees, which is why he owns 5.7 million shares, a stake worth more than $100 million. Other big institutional owners include the likes of Goldman Sachs, Morgan Stanley and JP Morgan. - [By Stephan Byrd]
Get a free copy of the Zacks research report on CVR Refining (CVRR)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Top 5 Energy Stocks To Buy Right Now: Range Resources Corporation(RRC)
Advisors' Opinion:- [By Chris Lange]
The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Monday was Range Resources Corp. (NYSE: RRC) which rose about 6% to $16.05. The stock's 52-week range is $11.93 to $25.96. Volume was 8.6 million compared to the daily average volume of 7.4 million.
- [By Tyler Crowe]
Companies in this region have had more measured growth plans because of the lack of pipelines. As Miller mentioned, though, improved efficiency has resulted in most companies outpacing their production growth plans. The lack of takeaway capacity has led to much lower prices for in-basin production. Range Resources (NYSE:RRC), one of the larger producers in the region, has noted that its price realizations were 10% below benchmark prices because of a lack of takeaway capacity.
- [By Paul Ausick]
Range Resources Corp. (NYSE: RRC) fell about 4.4% Tuesday to post a new 52-week low of $14.43 after closing at $15.09 on Monday. The 52-week high is $34.93. Volume of about 15 million was nearly double the daily average of around 7.7 million shares traded. The company had no specific news.
- [By Paul Ausick]
Range Resources Corp. (NYSE: RRC) fell about 3.6% Monday to post a new 52-week low of $14.77 after closing at $15.30 on Friday. The 52-week high is $35.64. Volume of about 9.4 million was about 20% higher than the daily average of around 7.7 million shares traded. The company had no specific news.
- [By Joseph Griffin]
Media headlines about Range Resources (NYSE:RRC) have been trending somewhat positive on Saturday, Accern Sentiment Analysis reports. The research group identifies positive and negative press coverage by monitoring more than twenty million news and blog sources in real-time. Accern ranks coverage of public companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Range Resources earned a daily sentiment score of 0.07 on Accern’s scale. Accern also gave media headlines about the oil and gas exploration company an impact score of 46.3371462950661 out of 100, indicating that recent press coverage is somewhat unlikely to have an effect on the stock’s share price in the near future.
- [By Ethan Ryder]
Get a free copy of the Zacks research report on Range Resources (RRC)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Top 5 Energy Stocks To Buy Right Now: Sunoco LP(SUN)
Advisors' Opinion:- [By ]
That's the case for Sunoco (NYSE: SUN). After posting a net loss of $0.09 per share in 2017, the gas station owner is expected to swing to a hefty profit of $2.35 per share in 2018. But of the 14 analysts who follow the company, earnings estimates range as low as $1.22 and as high as $3.35 -- so there is a high degree of uncertainty.
- [By Tyler Crowe]
Around this time last year, Sunoco LP (NYSE:SUN) announced a transformative divestment. The sale of its extensive retail filling station network to convenience store specialist 7-Eleven was going to give management the cash it needed to clean up its balance sheet and provide it with a much more stable revenue source. One would have assumed that when the company made this transaction, Wall Street would reward the stock with a higher valuation. That hasn't been the case, though, as Sunoco's stock is still languishing with a sky-high distribution yield north of 12%.
- [By Benzinga News Desk]
President Donald Trump hinted he may intervene in the Justice Department’s Russia investigation, as a Senate panel advanced a measure to protect Special Counsel Robert Mueller: Link
ECONOMIC DATA USA GDP (QoQ) for Q1 2.30% vs 2.00% Est; Prior 2.90% The University of Michigan's consumer confidence index for April is schedule for release at 10:00 a.m. ET. The Baker Hughes North American rig count report for the latest week will be released at 1:00 p.m. ET. Data on farm prices for the recent week will be released at 3:00 p.m. ET. ANALYST RATINGS Stifel upgraded Facebook (NASDAQ: FB) from Hold to Buy Morgan Stanley upgraded Acacia Communications (NASDAQ: ACIA) from Underweight to Equal-Weight Jefferies downgraded Sunoco (NYSE: SUN) from Hold to Underperform KBW downgraded Oaktree Capital (NYSE: OAK) from Outperform to Market PerformThis is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here.
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