These are the 3 Best Energy Stocks to buy in April 2024, as per analysts. The energy sector has been on an upswing in 2024, with energy stocks outperforming the broader S&P 500 (SPX) index. The U.S. WTI crude oil prices have surged roughly 19% so far in 2024 due to the ongoing crisis in the Middle East. Moreover, investors are concerned about stubborn U.S. inflation and uncertainty around the anticipated price cuts by the Federal Reserve.
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The energy sector has several sub-segments, including oil exploration companies, drilling companies, refining companies, and oilfield services and equipment providers. As such, we have identified three oilfield services stocks from the energy sector that have won analysts’ favor and are expected to offer over 15% upside potential in the next twelve months.
#1 SLB (NYSE:SLB)
SLB, formerly known as Schlumberger, offers advanced technology that helps drillers and exploration companies with new and effective drilling services in oil and gas.
SLB stock has remained more or less stable over the past year, but has fallen 12.5% in the past six months. The company is slated to report its Q1 FY24 results on April 19, before the markets open. The Street expects SLB to post adjusted earnings per share (EPS) of $0.75 on revenue of $8.70 billion. This shows a marked improvement compared to the Q1 FY23’s adjusted EPS of $0.63 and revenue of $7.74 billion. Ahead of the results, several analysts reaffirmed their Buy views on SLB stock.
On April 2, SLB announced the acquisition of ChampionX Corp (NASDAQ:CHX) in an all-stock deal worth $8 billion. The deal will enhance SLB’s capabilities with top-tier production chemicals and artificial lift technologies.
What is the Price Target for SLB?
On TipRanks, the average SLB stock price target of $67 implies 28.9% upside potential from current levels. Also, SLB stock has a Strong Buy consensus rating, backed by nine Buys and one Hold rating. SLB pays a regular quarterly dividend of $0.28 per share, reflecting a yield of 1.87%.
#2 Baker Hughes Company (NASDAQ:BKR)
Baker Hughes is an energy technology company that offers efficient, reliable, and clean energy solutions. The company’s advanced technological solutions are employed in various verticals, including oilfield services, LNG, industrial technology, energy transition, and remote operations.
Baker Hughes is scheduled to report its Q1 FY24 results on April 23, after the market closes. The Street expects BKR to report adjusted EPS of $0.40 on revenue of $6.37 billion. This shows a huge jump compared to the prior year’s comparative figures of adjusted EPS of $0.28 and revenue of $5.72 billion.
BKR boasts a healthy dividend yield of 2.42%, paying a regular quarterly dividend of $0.21 per share. BKR stock has gained 13.4% in the past year.
What is the Future of BKR Stock?
With 14 Buys and three Hold ratings, BKR stock commands a Strong Buy consensus rating on TipRanks. The average Baker Hughes price target of $40.77 implies 23.4% upside potential from current levels.
#3 Halliburton Company (NYSE:HAL)
Halliburton creates innovative technologies, products, and services that help customers maximize their value throughout the lifecycle of the reservoir, spanning exploration, well construction and completion, optimizing production, and performing abandonment activities at the end of asset life.
Halliburton is set to release its Q1 FY24 results on April 23, before the market opens. The Street expects HAL to post diluted EPS of $0.75 on revenue of $5.67 billion. In the prior-year period, HAL reported diluted EPS of $0.72 on revenue of $5.68 billion.
The company pays a regular quarterly dividend of $0.17 per share, with a yield of 1.58%. In the past year, HAL stock has gained 18.6%.
Is Halliburton a Good Stock to Buy Now?
With 14 unanimous Buy ratings, HAL has a Strong Buy consensus rating on TipRanks. The average Halliburton price target of $47.36 implies 19.4% upside potential from current levels.
Key Takeaways
The oilfield services sector is poised for phenomenal growth, as the demand for oil, gas, and renewable energy continues to rise. The aforementioned three energy companies are focused on providing decarbonization solutions for a cleaner future. Moreover, all three stocks pay dividends and are favored by analysts, with expectations of high price share appreciation.
