3 Hot Energy Stocks to Watch This Month
StockNews
Published Oct 04, 2021 03:48PM ET
Updated Oct 04, 2021 04:30PM ET
3 Hot Energy Stocks to Watch This Month
As the demand for oil and natural gas continues to increase, it could be wise to invest in quality energy stocks Royal Dutch Shell (LON:RDSa) (RDS.A), TotalEnergies (TTE), and BP (NYSE:BP). They have rallied over the past few months, yet valuations remain attractive. .Rising oil and gas prices due to strong demand and supply cuts over the past couple of years have made the energy sector - the best-performing sector over the past month. Investors’ interest in energy stocks is evident from the Energy Select Sector SPDR Fund’s (XLE (NYSE:XLE)) 12.9% gain over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 3.9% loss.
According to a CNBC report, natural gas prices are rising, and this year, the commodity could be the most expensive in 13 years due to a demand-supply imbalance. The international crude oil benchmark Brent rose above $80 a barrel last week, hitting a 3-year high. Goldman Sachs (NYSE:GS) calls for Brent crude to hit $90 a barrel by the end of the year.
So, it could be wise to scoop up the shares of fundamentally strong energy stocks Royal Dutch Shell plc (RDS.A), TotalEnergies SE (TTE), and BP p.l.c. (BP). They are currently trading above their respective 50-day and 200-day moving averages. In addition, they have a Buy rating in our proprietary POWR Ratings system.
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