Strong Bullish Momentum in an Overlooked Oil Sector

It's more than just drilling… Published By Money & Markets, LLC. March 04, 2024 Published By Money & Markets, LLC. March 04, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( Strong Bullish Momentum in an Overlooked Oil Sector Money & Markets Daily, My friend Greg is an interesting guy. I met him while I was earning my master’s degree in politics at Johns Hopkins University. He was studying chemistry. After we graduated, I went back to journalism, but his career path took a unique route. He had job offers from pharmaceutical and chemical companies, but he wasn't interested. Being from Texas, he instead elected to work for an oil company on one of their offshore drilling rigs. We reconnected recently, and he told me about his experiences on rigs in the Gulf of Mexico. The pay was great — especially if you counted all of the overtime — but the jobs were dangerous. Working in the middle of nowhere — about 200 miles from the Gulf shore — where you rely only on the equipment you have and the person working next to you. Greg told me that even the smallest malfunctioning valve can cause a massive shutdown, injury… and even death. He said it’s easy for people to overlook how important oil drilling infrastructure is. It got me thinking about what makes offshore drilling platforms work. I found an interesting trend, and using Adam O’Dell’s proprietary Green Zone Power Ratings system, I found a stock with a significant upturn in momentum that is worth a look for your portfolio. Oil and Gas Infrastructure Market Rising An offshore oil rig is more than just a massive drill bit sunk into the ocean floor. Pipes, valves, refining products and storage are all part of oil and gas infrastructure. And business is booming: [Turn Your Images On] The size of the global oil and gas infrastructure market was $706.9 million in 2023. By the end of 2032, the market is expected to reach $1.2 billion — that’s a 74% increase! The market is set to grow at a compound annual growth rate of 6.35% from 2023 to 2032. Adam has mentioned the transition away from traditional fossil fuels will take a lot of time to complete, meaning our dependence on oil and gas won’t go away soon. Seeing this trend in oil and gas infrastructure, I used his Green Zone Power Ratings system and found a stock with a significant surge in momentum and a high overall rating worth looking at. --------------------------------------------------------------- [Turn Your Images On]( [The #1 Oil Stock for 2024]( Warren Buffett has invested $350 million into Occidental Petroleum. Making Berkshire Hathaway’s holdings in the oil and gas sector over $40 billion. Yet, Occidental is NOT the most exciting oil opportunity today. Instead, there’s a little-known North Dakota oil miner that Chief Investment Strategist Adam O’Dell is expecting will hit at least 100% in the next 100 days. [Click here to get all the details now](. --------------------------------------------------------------- Green Zone Power Ratings: DNOW Inc. I pinpointed DNOW Inc. (NYSE: DNOW) using our system. [Turn Your Images On] DNOW specializes in distributing products for industrial applications, like pipe fittings, gauges, pipes, repair parts and power transmission equipment. The stock rates 93 out of 100 on the Green Zone Power Ratings system. That means we are “Strong Bullish” on it and expect it to outperform the broader market by 3X over the next 12 months. Its 98 on Value comes in part from a price-to-earnings ratio of 6.3 — which is half the industry average. The stock’s price-to-cash flow and price-to-book value are also half its peer average. The stock earns a “Neutral” 50 on Momentum, but its price movement from the middle of February is worth noting: DNOW Stock Up 48% From February 2024 Lows [Turn Your Images On] After hitting a low of around $9 on February 14, the stock took off… with a 48% rise off that low. That price jump is thanks to DNOW beating earnings expectations in its fourth-quarter 2023 earnings report. The company reported earnings per share of $0.22 on $555 million in revenue against expectations of $0.16 earnings on $540 million in revenue. As Chad Stone [touched on Friday]( this was one of those massive earnings beats that created a bullish rally in the stock. Bottom line: My friend Greg relied on his fellow rig workers and the equipment they used while working 200 miles off the coast. The market for oil and gas infrastructure products is on the rise, but only reliable equipment will suffice. An outstanding earnings report tells me there is trust in the products DNOW provides. That means demand should be strong for years to come. Couple that with “Strong Bullish” Green Zone Power Ratings, and DNOW is a compelling stock to look at for your portfolio. Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( P.S. For details and access to Adam’s No. 1 oil stock recommendation today, [click here.]( --------------------------------------------------------------- [Turn Your Images On]( [#1 Stock for Energy Crisis (Buy Now for Just $8)]( As the world suffers an oil shock… And gas prices rip higher… One tiny company could have the answer to the global energy crisis. It’s using AI to crack open the largest untapped energy source on the planet… 5X larger than the biggest oil field on Earth. [Act fast, this $8 stock could be moments away from appreciating considerably.]( --------------------------------------------------------------- [Turn Your Images On] Inflation Still Hurts (Even After We Omit Food & Energy) Federal Reserve officials exclude food and energy prices when they measure inflation. Consumers can't do that. We have to pay for food and energy no matter what the Fed thinks. The chart below shows that inflation has hurt us even if we did follow the Fed's lead. The red line is the Fed's preferred measure of inflation — personal consumption expenditures, excluding food and energy. It's indexed to a value of 100 in January 2020. The blue line is the change in income since then, also indexed to start at 100. Even after excluding two of the average household's biggest expenses, we see that consumers have fallen behind. Price gains outpaced income growth by 8.3%. Inflation has hurt consumer spending. When the Fed does act, it may be forced to cut rates quickly. This would boost stocks starting later this year. — Mike Carr, Chief Market Technician, Money & Markets [Turn Your Images On] [(Click here to view larger image.)]( Check Out More From Money & Markets Daily: - [YOUR POWER RATINGS GUIDE TO EARNINGS AS STOCKS POP (AND DROP)]( - [A GREEN ZONE BREAKDOWN OF BUFFETT'S 3 TOP STOCKS]( - [WE ALREADY KNOW NEXT MONTH’S WINNING SECTOR]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. 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Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. 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