Oil stocks are an incredibly attractive investment option for many investors. The energy sector has been on a steady climb over the past decade, with several major oil companies becoming household names. But what makes oil stocks so desirable? This article will provide a brief overview of the various facets of oil stocks to help you make an informed decision about your investments.
What are Oil Stocks?
Oil stocks refer to any publicly traded company that produces, refines, or distributes oil products. These include oil giants like ExxonMobil (NYSE: XOM) and Devon Energy (NYSE: DVN) as well as smaller companies such as Apache Corp and Noble Energy. Investing in oil stocks can be an attractive option due to the potential for high returns, especially when prices are low. However, it’s important to understand the risks associated with investing in this sector before making a commitment. With this in mind, here are two trending oil stocks to watch in the stock market now.
Oil Stocks To Watch Today
Marathon Oil (MRO Stock)
First, Marathon Oil Corporation (MRO) is an oil and gas exploration and production company. For a sense of scale, at the end of 2021, the company reported net proved reserves of 1.1 billion barrels of oil equivalent.
Last month, Marathon Oil reported weaker-than-expected third-quarter 2022 financial results. Diving in, the company reported earnings of $1.24 per share and revenue of $2.2 billion for Q3 2022. Additionally, the company reported a revenue increase of 54.6% versus the same period, a year prior. What’s more, the company’s Board of Directors has increased its outstanding buyback authorization to $2.5 billion as of Nov. 2 and raised the quarterly base dividend 13%.
In 2022 so far, shares of MRO stock have advanced by 60.34%, outperforming the broader markets year-to-date. Furthermore, during Monday’s mid-morning trading session, MRO stock is trading higher by 3.17% at $27.01 a share.
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Chevron Corporation (CVX Stock)
Next, Chevron Corporation (CVX) is one of the world’s leading energy companies, with operations in countries across six continents. For a sense of scale, Chevron is the second-largest oil company in the United States. In detail, the company reported production of 3.1 million barrels of oil equivalent a day.
At the end of October, Chevron reported a beat for its third-quarter 2022 financial results. Getting straight into it, the company reported 3rd quarter 2022 earnings of $5.56 per share, along with revenue of $66.6 billion. Moreover, Chevron announced a 49.1% advance in revenue compared to the same period, the previous year. Furthermore, Chevron also announced it paid dividends of $2.7 billion, which reflects a 6% increase per share versus the same period, a year prior.
Looking at 2022 so far, shares of CVX stock are up 42.18%, outperforming the broader markets year-to-date. Meanwhile, during Monday’s mid-morning trading session CVX stock is trading slightly higher by 0.89% at $169.58 a share.
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