The Oil – Energy sector is known for its
unpredictable swings, with stock performance often hinged on volatile market conditions. This
inherent unpredictability makes stock selection a challenging and sometimes risky endeavor.
However, amid the uncertainty, there are standout performers.
Let’s delve into three
promising names — TechnipFMC plc FTI, Coterra Energy CTRA, and
Sunoco LP SUN. These companies have demonstrated impressive EPS growth in
recent years, positioning them as attractive buys at the current levels for investors seeking
potential long-term gains in this dynamic industry.
TechipFMC: Amid the
challenges posed by volatile energy prices in today’s market, TechnipFMC has emerged as a
standout.
Headquartered in the UK, TechnipFMC was established in January 2017 through the
merger of Technip and FMC Technologies. The company specializes in manufacturing, supplying, and
delivering fully integrated technology solutions and services tailored to the energy
industry.
Zacks Rank #1 (Strong Buy) TechnipFMC’s stock price has trended higher in the
recent past, with its valuation also supporting more upside potential. Trading close to its
52-week high of $32.64 a share and with 15.90X forward earnings, FTI stock remains 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 dropped 19.1% in a decade
but has climbed 78.6% over the last 12 months, comfortably outperforming the benchmark S&P
500 Index. FTI earnings are expected to have more than tripled for 2024 and increase another
24.6% in 2025 to $2.01 per share. As a matter of fact, 2025 could witness an attractive 235%
increase from the 2019 adjusted EPS of 60 cents a share.
Image Source: Zacks Investment Research
Coterra Energy: Another candidate for attractive EPS
growth is Coterra Energy. It belongs to the Zacks Oil and Gas - Exploration & Production
- U.S. industry.
It is an independent upstream operator primarily engaged in the
exploration, development and production of natural gas. CTRA is currently #1 Ranked.
Trading
at a little over $27 per share and 9.70X forward earnings, CTRA has a Value Score of
B. The company trades 70% below its five-year high of 32.75X and is under the median of
9.88X.
Image Source: Zacks Investment Research
Coterra Energy has more than doubled over the last five years to beat the
S&P 500’s increase of 101%. But the stock has just managed a meager 4.4% gain over the
last six months, underperforming the benchmark during the period. In other words, Coterra
Energy shares appear to be oversold at the moment, considering its strong fundamentals and
valuation.
CTRA earnings are forecast to rise 80.1% in 2025 to $2.90 per share. That
would be an outstanding 79% increase from the 2019 adjusted EPS of $1.62 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 also carries a Zacks Rank of 1,
with earnings estimates for 2025 moving up 44% over the last 60 days. Moreover, at $52.46
per share and 5.34X forward earnings, SUN trades far more conservatively compared to its
10-year high of 30.65X and the median of 11.52X.
While Sunoco stock lost 4.6% over
the last year, it has climbed 52.2% in the last three years alone to crush the S&P 500’s
rise of 33.5%.