Investors may want to jump into oversold oil stocks now.
All as tension in the Middle East, and with Russia-Ukraine continue to boil.
Israel, for example, wants to intensify its pressure to force Hamas to negotiate or return hostages. It’s also being reported that Israel could hit Iran again. Russia continues to strike Ukraine. NATO scrambled jets after Russia’s bombardment of Ukraine. Germany may soon provide Ukraine with long-range missiles.
In addition, according to Russian news agency, TASS.com, “Russia treats the idea of the coalition of the willing to create a multinational force as a plan of military intervention and will regard its units in Ukraine as legitimate targets, Russian Foreign Ministry Spokeswoman Maria Zakharova said.”
All of which could easily send oil prices, and oversold oil names, even higher.
Look at Exxon Mobil (SYM: XOM).
After finding strong double bottom support at around $108, XOM is just starting to pivot higher. In fact, from its last traded price of $110.79, we’d like to see it initially test $116.
While we wait for that to happen, we can at least collect its yield of about 3.6%.
Plus, analysts at Scotiabank just raised their price target on the XOM stock by $10 to $125 a share, with a sector perform rating. We also have to consider that XOM has a very strong balance, which will continue to support the business and its healthy yield.
Occidental Petroleum (SYM: OXY)
With a yield of 2.15%, Occidental Petroleum is also just starting to pivot from double bottom support at $42. Last trading at $44.63, we’d like to see it break above prior resistance at round $46. If it can, it could refill its bearish gap at around $48 next.
Piper Sander just raised its price target on OXY to $50 from $48. Bank of America reiterated its hold rating on the stock with a price target of $44 a share.
EOG Resources (SYM: EOG)
With a yield of 3.43%, EOG Resources is also starting to pivot higher.
After finding support at about $117, it’s now up to $119.05. From here, we’d like to see it initially retest $125 a share. Raymond James also raised its price target on EOG to $161 from $158 with a strong buy rating on the stock.
P.S. Chart of Day: Advanced Micro Devices (AMD) is still a strong opportunity.
After a brief pullback, shares of Advanced Micro Devices (AMD) are just starting to pivot higher again. Last trading at $157.10, we’d like to see the stock test $175, near-term.
Helping, AMD Executive Vice President and Chief Commercial Officer, Philip Guido bought 8,800 shares of the stock for just under $1 million.
Two, we have to remember the company is exposed to a multi-billion-dollar addressable market for data center AI chips. In fact, according to company Chair and CEO Lisa Su, that addressable market for AI chips will reach $500 billion by 2028, which is up from her prior estimate for $400 billion by the time 2027 rolls around.
And three, the company’s latest generation of AI chips, the MI300, is its fastest ramping product ever. Lisa Su added that AMD’s MI300X chip—which rivals dominant AI chipmaker Nvidia’s H100 is “the most advanced AI accelerator in the industry,” as noted by Time.com.
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