1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1669) 

3 High-Performing Large-Cap Energy Stocks

Plains All American Pipeline LP tops the list

March 10, 2019 | About:

These large-cap energy companies have shown positive margins on the stock market over the past week, month, year and three years.

Further, these stocks have either a moderate-to-high financial strength rating from GuruFocus or an Ebitda margin topping the industry median.

Houston, Texas-based oil & gas midstream company Plains All American Pipeline LP (NYSE:PAA) has climbed 0.4% over the last week, 3.5% over the past month, 18.3% so far this year, 5.5% over the last 52 weeks and 3.7% over the past three years through March 8. These margins exclude dividends paid.

The company has paid dividends since 1999. Currently, Plains All American Pipeline grants a cash quarterly dividend of 30 cents per ordinary share which, based on the share price at close March 8, leads to a forward dividend yield of 5.06%. This return is topping the dividend yield of 1.96% of the S&P 500 index at March 8.

The stock closed $23.71 per share on Friday for a market capitalization of $17.23 billion. The stock has a price-earnings ratio of 8.87, a price-book ratio of 1.5 compared to an industry median of 1.74 and an enterprise value-to-earnings before interest, taxes, depreciation and amortization ratio of 7.87 versus an industry median of 12.84.

Plains All American Pipeline has a financial strength rating of 6 out of 10 and a profitability and growth rating of 5 out of 10.

The Peter Lynch chart suggests the stock is undervalued on the market.

Wall Street released an overweight recommendation rating on shares of Plains All American Pipeline meaning analysts foresee the stock to outperform either the industry or the overall market with an average target price of $27.65 per share.

Houston, Texas-based oil & gas midstream company Cheniere Energy, Inc. (LNG) has gained 3.6% over the last week, 1.1% over the past month, 12% year to date, 22.7% over the last 52 weeks and 85.7% over the past three years through March 8.

The stock was trading around $66.29 per share on Friday for a market capitalization of $17.06 billion. The stock has a price-earnings ratio of 34.18, a price-sales ratio of 2.04 versus an industry median of 2.3 and an enterprise value-to-earnings before interest, taxes, depreciation and amortization ratio of 18.52 versus an industry median of 12.84.

Cheniere Energy has a low financial strength rating of 3 out of 10, but a high profitability and growth rating of 7 out of 10 which is mainly resulting from an EBITDA margin of 32% versus the industry median of 18%.

Cheniere Energy does not pay a dividend.

The Peter Lynch chart suggests the stock is not cheap.

Wall Street issued a recommendation rating of buy on shares of Cheniere Energy with a price target of $79.18 per share.

The Australian oil & gas explorer and producer Santos Limited ADR (SSLZY) has gained 1.6% over the last week, 11.1% over the past month, 32.5% year to date, 32.6% over the last 12 months and 81.8% over the past three years through March 8.

Shares of Santos Limited were trading around $5 per share on Friday for a market capitalization of $10.2 billion.

The stock has a price-earnings ratio of 16.16 versus an industry median of 11.83, a price-book ratio of 1.4 compared to an industry median of 1.3 and an enterprise value-to-earnings before interest, taxes, depreciation and amortization ratio of 6.8 versus an industry median of 7.99.

Santos Limited has a moderate score of 5 out of 10 for financial strength and for profitability and growth. Further, concerning the profitability, the Australian oil & gas operator is beating the industry median by 5.6 percentage points on EBITDA margin of 55.6%.

The company will pay an interim dividend of 6.2 cents per ordinary share to its shareholders on March 28. Will benefit shareholders that on Feb. 27 were on the company’s record. The distribution, based on the share price at close on Friday, leads to a forward dividend yield of 2.48% versus an industry median of 3.52%.

The Peter Lynch chart suggests the stock is slightly overvalued.

Wall Street issued an overweight recommendation rating on shares of Santos Limited with an average target price of $5.12 per share. Thus, analysts predict the stock will outperform either the industry or the overall market within 52 weeks.

Disclosure: I have no positions in any securities mentioned in this article.

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK