offshore drilling rig on body of water

With oil making an 8% move up over the weekend, prices look overextended. There may be a small pullback, however, we think prices will continue to rise and supply chains continue to suffer. Here are three oil companies that we think will do well over the next month.

National Fuel Gas Company (NYSE:NFG)

National Fuel is a diversified energy organization headquartered in Western New York that operates an integrated collection of natural gas and oil assets across four business segments: exploration and production, pipeline and storage, gathering, and utility.

NFG has a market cap of $6B. The price is currently $65. Previously, $66 has acted as resistance and seen the price fail to break through. With current momentum, I think the level will break and the price will rise quickly. I think $72-$75 over the next month is reasonable if oil continues its price increase.

Adams Resources & Energy, Inc. (ARCA:AE)

Adams Resources & Energy is primarily engaged in the business of crude oil marketing, transportation and storage and tank truck transportation of liquid chemicals and dry bulk through its two wholly owned subsidiaries, GulfMark Energy, Inc. (‟GulfMark”) and Service Transport Company.

While Adams does not directly extract oil or sell it, we think it can still see a boost in the share price with the current move. The price has risen 13% in the last three trading days. This chart is also looking to breakout above a downtrend. I think we could see the price move another 15% to around $42. The market cap for Adams is very low at just $155M.

Camber Energy, Inc. (ARCA:CEI)

Camber Energy provides custom energy & power solutions to commercial and industrial clients in North America and owns interests in oil and natural gas assets in the United States. We wrote about CEI back in September when the price was $1.50 and had a $5 target on it. The price reached $4.86 at its peak during that month. It is a popular name that took a heavy hit as many short sellers entered the stock on the decline. It definitely fell from grace as the price went as low as $0.45 last month.

Despite this previous decline, we think it can make a move again. Maybe not to the same extent but a notable one nonetheless. The price made an impressive 32% move on Friday and is up another 41% in pre-market. With the large interest in this name, theres no knowing how volatile the price can move. A smaller position size would be better suited for this name.

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