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CNBC
22-05-2025
- Business
- CNBC
Best Stocks: A name that's a standout in its sector, with terrific fundamentals and nice chart set-up
(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh: One sector that's been down and out for most of this year has been energy. These stocks have not participated. Many of the blue chip names in the space have completely missed out on the rally this spring. So I thought it might be interesting to look at some of the better stocks in the energy sector as a prelude to a possible rotation. It's been my experience that paying attention to good stocks in a bad segment of the market is a nice way to be positioned for when the group comes back into favor. I prefer this idea as opposed to focusing on the cheapest or the hardest hit names and hoping for a bounce. Both approaches may be valid and produce good results, but for the purposes of the Best Stocks concept, we're looking for strength, not weakness. The Best Stocks in the Market list currently has four energy stocks on it — two high-yield dividend plays and two companies with more growth characteristics. We'll show you all the charts below and put the spotlight on the one that looks like the most interesting set-up. Best Stock spotlight: EQT Corp. (EQT) Sean: The energy sector has struggled in 2025. It is down 1.6% year-to-date, tied with healthcare as the second worst sector this year. Only 35% of S & P 500 Energy constituents are above their 50-day moving average and an abysmal 30% of constituents are above their 200-day moving average. Both of those technical readings are the lowest readings of any sector. As Josh mentioned, taking a look at what's been working within a poorly performing sector can give us insight into the highest quality stocks within that area of the market. Those four energy stocks on our list are EQT Corp. (EQT) , Expand Energy (EXE) , Williams Cos. (WMB) , and Kinder Morgan (KMI) . Both EQT and EXE are the more growth oriented of the four. Both firms are natural gas-focused exploration and production companies. EQT is the best of the bunch with a 21% YTD return, making it the second best energy stock this year, and the 35th best S & P 500 stock in 2025. EQT is an independent natural gas production company with operations in the Marcellus and Utica shales, located in the Appalachian Basin. The company also has a joint venture with Blackstone. All of the firm's operating revenue is generated within the U.S., with most revenue flowing from the Marcellus Shale field and through the sale of natural gas. EQT has the second-highest expected EPS growth within S & P 500 Energy this year at 110% year-over-year EPS growth (just behind another stock on our list, EXE), and they expect 47% growth next year. What separates EQT from EXE (which we will hit next) is its profitability. EQT's operating margins are 17% while EXE's are 2%. EQT trades at a forward PE of 11x, all while ramping up its bottom line earnings. There's some institutional ownership here, too. As of Q1, big-name hedge funds like AQR, DE Shaw, and Millennium were ramping up ownership in the stock. It's a value stock acting like a momentum stock, which are great characteristics to have within a poorly performing sector. EXE has a good looking chart too: As of EXE's latest earnings call in April, it was the U.S.'s largest natural gas producer with holdings spanning 1.9 million acres. Free cash flow hit $533 million up from $131 million the previous year. EXE is also very well run. An entire portion of its earnings presentation is focused on a capital return framework. This includes a base dividend, an allocation of $500 million to pay down debt, plans to utilize additional free cash flow for variable dividends, and further balance sheet strengthening. The other two energy stocks on our list are WMB and KMI. Both of these firms are slower movers, operating midstream pipelines and refineries within the US. WMB has a dividend yield of 3.45% and KMI has a dividend yield of 4.25%. Both of these firms are holding up well in what's been a challenging environment for energy stocks, and they provide a bit more of a defensive posture relative to EXE and EQT. Risk Management Josh: What I like about the set-up for EQT is how well defined the risk is — the $50-$52 area had been resistance up until a month ago so it should become a support level in a rocky tape. So long as that level holds, I think you can be long. RSI in the low 60's confirms the recent retest of the highs but it is not at all overheated. Look for a high-volume breakout away from the $56 area as confirmation that the trade's going to work. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
Business Journals
22-04-2025
- Business
- Business Journals
EQT to acquire Marcellus Shale gas producer for $1.8 billion in latest expansion move
Story Highlights EQT Corp. to acquire Olympus Energy for $1.8 billion. Olympus Energy produces 500 million cubic feet of gas daily. Acquisition includes wells, acreage and midstream assets of Olympus Energy. EQT Corp. announced Tuesday it would acquire the upstream and midstream assets of Canonsburg-based natural gas driller Olympus Energy in a stock and cash deal worth $1.8 billion. Olympus Energy is a privately held company formerly known as Huntley & Huntley Energy Exploration. It became Olympus Energy in 2019. It's owned by Blackstone, a big private equity firm, and has about 500 million cubic feet of natural gas production per day from wells in and around Allegheny County. The deal announced by EQT (NYSE: EQT), one of the largest independent natural gas producers, includes $500 million in cash and 26 million shares of EQT common stock. The acquisition includes its wells, acreage and midstream assets. It will close in the third quarter. It's the latest acquisition by EQT, which has expanded under CEO Toby Z. Rice to also include, through other acquisitions, Chevron's Appalachia assets, Tug Hill Operating and its midstream assets, and Alta Resources in northeastern Pennsylvania. It follows EQT's acquisition of Equitrans Midstream Corp. (NYSE: ETRN) in an all-stock deal in 2024 and the November 2024 joint venture with Blackstone Credit & Insurance for a midstream joint venture that includes the Mountain Valley Pipeline it acquired earlier in the year in the Equitrans deal. EQT will grow larger still, in wells and also future sites to drill, with Olympus. It said Olympus has 10 years of Marcellus and seven years of Utica locations beyond its current drilling. 'The assets are positioned adjacent to several proposal power generation projects, providing strategic value upside,' Rice said in a statement. List of Largest Shale Gas Producers in Southwestern Pennsylvania Shale gas production, local, 2023 Rank Prior Rank Business name 1 1 EQT Corp. 2 2 Range Resources Corp. 3 3 CNX Resources Corp. View this list
Yahoo
02-04-2025
- Business
- Yahoo
EQT Stock Eyes Fresh Highs as Bullish Seasonality Kicks In
Shares of natural gas giant EQT Corp (NYSE:EQT) pulled back from their Feb. 19 peak of $56.66 -- the stock's highest level in more than a decade -- before finding support at the 100-day moving average near $45 in early March. From there, EQT staged an impressive rebound, adding 10.9% last month. While the equity dipped back below the $51.50 region to close out March, the technical picture and seasonal trends suggest another powerful rally could be brewing. In fact, EQT is one of the in April. According to Schaeffer's Senior Quantitative Analyst Rocky White, the equity has finished the month higher in eight of the past 10 years, averaging a solid 15.4% gain. A comparable move from its current perch at $54.60 would launch EQT to a fresh all-time high, above $60. Plus, now may be an ideal time to speculate with options. EQT sports a of 75 out of 100, indicating the stock has consistently outperformed volatility expectations over the past year -- a bullish indicator for premium buyers. Sign in to access your portfolio
