Commodity futures trading has numerous advantages including low risk of price manipulation, high leverage and diversification. Also, cases of unprecedented, unexpected fluctuations are rather rare compared to other stocks. This is what makes commodity futures trading a profitable activity, especially for those who make a living out of trading. Among the four types of commodities, a special one is energy.
Considering the current high profile debate regarding crude prices, it is considerably more challenging to decide which crude stock to choose. Yet, I am still optimistic about National Oilwell Varco (NYSE:NOV). Despite the fact that for almost seven quarters it has been constantly slumping, after applying a new strategy which implies price reduction the company seems to be recovering and a good investment at this point. Another oil production and exploration company worth considering is Pioneer Natural Resources (PXD). In the 10 year growth plan the company takes into account all the drawbacks of their previous strategy and elaborates a way more lucrative approach to all the fundamental aspects. Obviously, the CEO was exaggerating severely when he compared the upcoming development of Pioneer Natural Resources with Apple, and yet the 790,000 acre hold by them and the market capitalization rate are an additional proof of the potential profitability of this stock.
Some other energy stocks I am considering are Halliburton (NYSE:HAL), U.S. Silica (NYSE:SLCA) and Antero Resources (NYSE:AR). What are your top energy stocks to buy?
submitted by /u/TheBinaryAdvisor
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April 30, 2017 at 01:58AM
from /u/TheBinaryAdvisor
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