Dr. Stoxx
Stock Trader & Author, Oxford DPhil, Trading Education
Petrobras leads this week's EWT Growth Leaders because of surging earnings and sales in the leading energy group. It ranks #1 with a 91 score and A rating: last-quarter EPS rose 121% year over year, sales 60%, and annual EPS 191%. A breakout above 26.42 or a fourth-wave pullback to 24.3-23.0 offers a setup for a projected fifth wave to 32.8-33.2. x.comÂ
Baker Hughes looks about one-third too cheap, as its energy technology business is being thrown out with the oil-services selloff. Its energy portfolio is incredible. x.comÂ
Halliburton is priced for shrinking margins just as fracking capacity tightens. Revenue has been roughly flat since 2023 while operating margin fell from 17.7% to 13.1% and EPS from $3.13 to $2.37, so it trades at 15.3x expected earnings versus about 22x for SLB and Baker Hughes. Years of underinvestment have left less North American frac equipment, and management says its fracking schedule is fully booked. Each one-point margin gain adds about $0.20 of EPS. x.comÂ
Baker Hughes, Valero Energy and Cheniere Energy stand to profit from a dual catalyst: the oil shock and tariff refunds. The three were identified by using AI to comb through large amounts of data. x.comÂ
Transocean looks compelling because offshore drillers trade like distressed cyclicals even as they add backlog. It sits near 0.93x book and 1.8x sales, with generalists scarred by 2020-21 bankruptcies, yet it has added about $1.6B of backlog since April, with recent day rates near $550k. Management guides utilization above 90% by late 2026, near 100% in 2027, and approval of the Valaris merger could re-rate it. Oil is the key risk: WTI below about $60 would bring capex cuts. x.comÂ
Vista Energy grows over 20% yet trades at about 10x earnings, while most big oil companies trade at 20-25x with single-digit growth. It also works as an oil hedge. x.com x.comÂ
Oil majors such as Shell, BP, ExxonMobil and Chevron deserve their multiples because they have consistently generated 10%+ returns across complete energy cycles. They are integrated, now diversified, and control a key commodity for decades ahead. Investors will do fine if they hold for the long term. x.comÂ
Targa Resources entered the top group of AI-selected US stocks with a score of 92, as a US oil and gas company with strong technicals and massive net profit growth over the past year. Plays like this will likely also be tied to the length and impact of the Iran war. x.comÂ
Texas Pacific Land gets a tailwind for its royalty stream as oil spikes on renewed Iran tensions. The stock fell from about $450 to $375 on fear tied to a headline about a major shareholder, not anything fundamental. Its water-treatment business is a growth story most investors are not yet pricing, with a national-security angle on top. A pullback near $400 would be a buying opportunity. x.com x.comÂ
Oceaneering International's subsea robotics for deepwater energy is back in focus as AI power demand and energy security take center stage. After a near-death cycle, the stock is back at its highs and setting up for a volatility-contraction breakout. x.comÂ