Shale Oil: A Thriving Sector With High Returns
Sector Overview: The Shale Oil Theme
Swing Trader: Sector Rotation Strategy (TA&FA) Annualized Return + 48%
Theme Shale Oil +9.9% 1 Month Change
Tickers in theme Shale Oil -- $APA $BHP $CHRD $CPE $EOG $ERF $FANG $HES $MRO $MTDR $MUR $PXD $VTLE $XOM
The Shale Oil sector is bustling with companies that hold high expertise in oil production. The group features big players like Marathon Oil and Hess, which have hands in diverse aspects of oil production. Smaller yet more dynamic companies, such as Diamondback Energy and Pioneer Natural Resources, bring specialization in shale oil production to the table. Shale oil extraction, albeit more costly than crude oil drilling, provides oil of superior quality. The oil price is susceptible to economic elements, geopolitical volatility, and domestic political scenarios, which can swing it significantly. For instance, a surge in Middle Eastern tensions usually leads to oil price spikes, while a calming environment brings them down.
The Future is Bright: Positive Outlook for the Shale Oil Group
A comprehensive analysis reveals a promising future for the stocks within this group. The Stock Fear & Greed Index, coupled with Tickeron's positive outlook, anticipates further growth of more than 4.00% within the next month with a likelihood of 79%. This positive sentiment is backed by a healthy ratio of 1.6 to 1 of daily advancing volumes to declining volumes observed in the last month.
A closer look at the Momentum Indicator reveals a similar positive trend in 12 stocks in the group, each with an average likelihood of 77% for continued progress.
Market Capitalization: A Broad Spectrum in Shale Oil
The average market capitalization within the Shale Oil theme is pegged at 59.5B, with individual companies spanning from 20.4M to a whopping 421.5 B. Exxon Mobil (XOM) stands tall with the highest market cap at 421.5B, while HPR occupies the other end of the spectrum at 20.4M.
Noteworthy Tickers in the Shale Oil Group
BHP Group (BHP)
BHP Group has seen significant growth recently, with its market cap surging by $60.7B on July 7th, 2023, and by $65.1B a week earlier. Despite experiencing the biggest weekly fall of -3.56%, the stock remains a heavy-hitter in the sector.
Exxon Mobil (XOM)
Exxon Mobil, the highest-valued company in the group, witnessed a considerable dip in its market cap by $21.7B on March 16, 2023. However, it still holds significant influence within the sector.
Pioneer Natural Resources (PXD)
Pioneer Natural Resources emerged as a top weekly gainer on July 25th, 2023, with a notable 5.33% jump in stock value, demonstrating its resilience and growth potential in the Shale Oil sector.
Trading Volumes: A Closer Look
Across the stocks in the Shale Oil theme, the average weekly volume growth was -1.98%, and the average quarterly volume growth was -4.08%. However, the average monthly volume growth surged to an impressive 142.36%, signaling increased trading activity.
Fundamental Analysis Ratings
Assessing the fundamental analysis ratings across the Shale Oil theme, the following picture emerges:
These ratings provide valuable insights into the performance and potential of this sector, reinforcing its position as a noteworthy theme in the current market landscape.
APA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 43 cases where APA's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where APA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for APA moved above the 200-day moving average on August 30, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where APA advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 215 cases where APA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for APA moved out of overbought territory on September 06, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on September 28, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on APA as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
APA moved below its 50-day moving average on September 28, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for APA crossed bearishly below the 50-day moving average on September 25, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where APA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. APA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (18.315) is normal, around the industry mean (6.317). P/E Ratio (8.651) is within average values for comparable stocks, (16.624). Projected Growth (PEG Ratio) (0.184) is also within normal values, averaging (2.552). Dividend Yield (0.024) settles around the average of (0.124) among similar stocks. P/S Ratio (1.456) is also within normal values, averaging (120.484).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. APA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a producer of natural gas, crude oil and natural gas
A.I.dvisor indicates that over the last year, APA has been closely correlated with MRO. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if APA jumps, then MRO could also see price increases.