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Bitcoin, U.S. Large Cap Growth, and Technology Continue to Dominate Returns

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Image source: Seeking Alpha, retrieved November 28 —– Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.  The Benefits of Premium Membership Sign Up Today. First 14 days FREE!  At Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m], we strive to stand out from the crowd. Most investment research publishers fall into a few camps, whether it be value, growth, income, momentum, chartist or some variant of the aforementioned. We think each in its own right holds merit, but the combination of these approaches is even more powerful. After all, stock price movements aren’t just driven by investors of the value or … Read more

Our Favorite Energy Giants Chevron and ExxonMobil are Focused on Returning Cash to Shareholders

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Image Shown: Shares of Chevron Corporation (blue line) and ExxonMobil Corporation (orange line) are both up sharply year-to-date as of this writing. By Callum Turcan Two of our favorite energy companies, Chevron Corporation (CVX) and ExxonMobil Corporation (XOM), recently reported their third quarter 2021 earnings reports. We include Chevron and ExxonMobil as ideas in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios given their ample capital appreciation upside and promising dividend growth trajectories. The top end of our fair value estimate range for Chevron and ExxonMobil stands at $144 per share and $110 per share, respectively, well above where each company’s shares are trading as of this writing. Shares of CVX yield ~4.7% and shares of XOM yield … Read more

Schlumberger Recovering, Outlook Bright

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Image Shown: Shares of Schlumberger NV are on the upswing, though the company’s stock price remains far below levels seen before the COVID-19 pandemic. By Callum Turcan On October 22, the oilfield services giant Schlumberger NV (SLB) reported third-quarter 2021 earnings that missed consensus top-line estimates and matched consensus bottom-line estimates. The company’s business continues to recover as oil & gas investment activity is picking up steam around the globe after getting decimated last year in the face of the coronavirus (‘COVID-19’) pandemic. Looking ahead, Schlumberger expects significant improvement in its mid-cycle financial performance from current levels, aided by major cost structure improvements embarked on last year. Financial Snapshot The firm’s GAAP revenues grew by 11% year-over-year due to growth … Read more

Putting the Environmental in ESG

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Valuentum’s ESG newsletter helps identify which stocks have strong ESG scores, and which ones come up short. Subscribe to the monthly Valuentum ESG Newsletter today by selecting the ‘Subscribe’ button below (12 editions, $1,000/year).   —– By Valuentum Analysts There is no single definition for ESG investing beyond the words that make up the acronym – Environmental, Social, and Governance. Investors looking at ESG may be doing so for a variety of reasons with a variety of different needs. But for every investor, a focus on ESG allows for a fuller consideration of the company, as a whole, as well as how that company impacts the 21st century landscape, as it relates to rewarding social responsibility by investing in companies … Read more

Booming Natural Gas Prices Great News for Chevron and ExxonMobil

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Image Shown: Chevron Corporation – August 2021 IR Presentation By Callum Turcan Natural gas prices in the US measured by the Henry Hub benchmark (UNG) based in Erath, Louisiana, have surged higher over the past several months. This is partially due to the slowdown in domestic oil & gas development activity that occurred back in 2020 in the wake of the coronavirus (‘COVID-19’) pandemic and low crude oil prices. Though crude oil prices, measured by the domestic WTI (USO) and international Brent (BNO) benchmarks, have since recovered, that has not resulted in domestic drilling activity returning to levels seen in 2019, though development activity has recovered somewhat. Henry Hub futures are trading north of $5 per million British thermal units … Read more

Our Two Favorite Midstream MLPs: EPD and MMP

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Image Source: Enterprise Products Partners L.P. – August 2021 IR Presentation In our High Yield Dividend Newsletter portfolio (more on that here), we include Enterprise Products Partners L.P. (EPD)—8.1% yield—and Magellan Midstream Partners L.P. (MMP)—8.7% yield—as ideas with modest “weightings” as these are our two favorite midstream master limited partnerships (‘MLPs’). The global economy is steadily recovering from the worst of the coronavirus (‘COVID-19’) pandemic, though variants of the virus remain a concern. Enterprise Products and Magellan Midstream are well-positioned to capitalize on this recovery while continuing to make good on their “generous” payout obligations. Enterprise Products  When Enterprise Products reported its second quarter 2021 earnings in late-July 2021, the midstream MLP showcased the positive impact the ongoing recovery in … Read more

ExxonMobil Continues to Optimize Its Asset Base

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Image Source: ExxonMobil Corporation – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan According to Reuters, ExxonMobil Corporation (XOM) is in the process of divesting its Fayetteville shale play position in Arkansas, which ExxonMobil’s spokeswoman Julie King confirmed according to the news outlet. This is an upstream asset focused on the extraction of natural gas from the ground via “fracking” techniques (combing horizontal drilling and hydraulic fracturing to unlock raw energy resources from the ground). Divestment Overview The Fayetteville shale play was once touted as a major part of America’s way to become “energy independent” during the early days of the fracking boom. However, the play soon lost favor with energy firms large and small due to the … Read more

Valuentum Weekly

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Image: Bitcoin, technology and large cap growth have led the pack the past 5 years while pipeline MLPs, crude oil and energy stocks have fallen way behind. Large cap growth > small cap value. Bonds, non-US stocks continue to lag. The Valuentum Weekly is a brand-new weekly market commentary from Valuentum Securities, released each weekend in digital form. The Valuentum Weekly offers members a weekly synopsis of the markets and major events. It will be straight and to-the-point. Our goal is to deliver to you the latest information and insights. We welcome your feedback on how we can make the Valuentum Weekly as useful and as relevant for you as ever! Takeaways The markets offer investors an asymmetric risk opportunity, … Read more

Chevron Posts a Great Earnings Update, Share Repurchases to Resume

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Image Shown: An overview of Chevron Corporation’s performance in the second quarter of 2021. We include shares of Chevron as an idea in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios and continue to be huge fans of the name as the global energy complex continues to recover from the worst of the coronavirus (‘COVID-19 pandemic). Image Source: Chevron Corporation – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan We added shares of Chevron Corporation (CVX) as an idea to both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios back on June 27, 2021 (link here). The outlook for the global energy complex continues to improve significantly from the worst of the coronavirus (‘COVID-19’) pandemic, … Read more

ExxonMobil’s Immense Upside in Guyana

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Image Source: ExxonMobil Corporation – 2021 Investor Day Presentation By Callum Turcan On June 27, we added shares of ExxonMobil Corporation (XOM) as an idea to the Best Ideas Newsletter portfolio and the Dividend Growth Newsletter portfolio (link here). The backdrop for the energy complex has improved considerably in recent months. Raw energy resources pricing has surged in the wake of demand for refined petroleum products beginning to recover in earnest, while demand for various petrochemical products is also on the rise. Near-term Brent and WTI futures are trading north of $70 a barrel as of this writing, keeping in mind Brent averaged ~$60-61 per barrel and WTI averaged ~$57-$58 per barrel during the first three months of 2021. On … Read more