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Top Five Energy Stocks from Validea per Joseph Piotroski’s Method

Who doesn’t like a good stock tip? How you can get the top five energy stocks from Validea, an investment research service that follows the published strategies of investment legends.

One of these legends is Joseph Piotroski. Unlike Warren Buffet, he is just a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago’s Graduate School of Business, he published a groundbreaking paper in the Journal of Accounting Research entitled “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers”.

We have come to listen to him based on his special method that is said to produce a 23% average annual back-tested return from 1976 through 1996. These stellar results more than double the S&P 500’s gain during that period.

Piotroski’s findings are so renowned that he is regularly reported in major financial publications like SmartMoney. He currently teaches accounting at Stanford University’s Graduate School of Business. Pretty good credentials over all!

The top five

After undergoing various tests under Piotroski’s method, these are the survivors. We start with CENOVUS ENERGY INC (CVE), a mid-cap growth stock in the Canadian Oil & Gas Operations industry. It gets an 80% rating, meaning it merits interest. The company has multiple operations in northern Alberta and British Columbia.

Another contender is GENESIS ENERGY, L.P. (GEL), a small-cap growth stock in the Oil & Gas Integrated industry. It is an 80% rating given the firm’s underlying fundamentals and the stock’s valuation. It is known for its midstream services, primarily transportation, storage, sulfur removal, blending, terminaling and processing in the Gulf of Mexico and the Gulf Coast region.

After testing, PBF ENERGY INC (PBF) comes out with a similar 80% score. This small-cap growth stock in the Oil & Gas Operations industry has good fundamentals and a strong stock valuation. The company distinguishes itself as an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products in the U.S.

ANTERO RESOURCES CORP (AR) deserves merit in this top five group. It is a small-cap growth stock in the Oil & Gas Integrated industry with the requisite fundamentals and the stock valuation. It’s score of 80% indicates interest. The Company is engaged in the exploration, development and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. Among its strengths are the exploration and production of natural gas, NGLs and oil; gathering and processing; and water handling and treatment.

ALLIANCE RESOURCE PARTNERS, L.P. (ARLP) rounds out this stellar group. It gets a lower 70% rating as a small-cap growth stock in the Coal industry. It shines as a producer and marketer of coal primarily to the United States utilities and industrial users. The company operates through segments, including Illinois Basin, Appalachia, and Other operations.

Source: https://www.nasdaq.com/articles/valideas-top-five-energy-stocks-based-on-joseph-piotroski-12-13-2020-2020-12-13

About the author

Melissa Critch

Melissa Critch

Melissa Critch is a lawyer by day and journalist in the free time. She likes to fact check and report latest Canadian news.

Melissa's hobby is to surfboard on the biggest sea waves possible.

She can be reached out at: melissa.critch@blog.ca

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