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Best Energy ETFs & Stocks of Last Week

Oil price surged last week on potential disruptions in output in the Gulf of Mexico and growing expectations that the Organization of the Petroleum Exporting Countries (“OPEC”) and allies including Russia, collectively known as OPEC+, might resist raising output. In fact, oil logged the biggest weekly gains since June 2020, with WTI jumping more than 10% and Brent climbing above 11%.

A powerful hurricane has ploughed through the Gulf of Mexico, forcing shutdowns and evacuations of hundreds of offshore oil platforms. Notably, Gulf of Mexico offshore wells account for 17% of U.S. crude production, while more than 45% of total U.S. refining capacity lies along the Gulf Coast.

Oil producers in the U.S. Gulf of Mexico have halted 91% of crude production due to Hurricane Ida, which was upgraded from a tropical storm to a Category 1 hurricane on Aug 27. Ida smashed into the coast near Louisiana’s Port Fourchon, a hub of the Gulf's offshore energy industry, on Sunday as an extremely dangerous Category 4 hurricane, per the National Hurricane Center. Energy companies had evacuated 290 offshore facilities — more than half of those in the Gulf of Mexico — and 11 drill rigs by Aug 29.

Meanwhile, OPEC+  is scheduled to meet on Sep 1 to reconsider the increase in oil output agreed last month (read: Is This the Time for Crude Oil & Energy ETFs?).

A weaker dollar added to the strength as it makes oil less expensive for foreign investors. However, improving supply in Mexico, looming worries over the spread of the coronavirus’ Delta variant, and mixed economic data from the United States and China continued to weigh on oil price.

As such, we have highlighted five energy ETFs & stocks that led the way higher last week:

Best ETFs

Most of these energy ETFs currently have a Zacks ETF Rank #2 (Buy) or 3 (Hold) and could be excellent choices to play the trend at least in the near term.

Invesco DWA Energy Momentum ETF PXI

This fund follows the Dorsey Wright Energy Technical Leaders Index, which measures the performance of the companies that are showing relative strength (momentum).

Zacks Rank: #3
AUM: $70 million
Expense Ratio: 0.60%
Last Week: 16.9%

Invesco S&P SmallCap Energy ETF PSCE

This fund offers exposure to the small-cap segment of the energy sector by tracking the S&P Small Cap 600 Capped Energy Index (read: Small-Cap ETFs That More Than Doubled in a Year).

Zacks Rank: #3
AUM: $110.7 million
Expense Ratio: 0.29%
Last Week Return: 16.3%

SPDR S&P Oil & Gas Equipment & Services ETF XES

This fund tracks the S&P Oil & Gas Equipment & Services Select Industry Index, which measures the performance of the companies engaged in the oil and gas equipment and services industry.

Zacks Rank: #3
AUM: $139.7 million
Expense Ratio: 0.35%
Last Week Return: 15.2%

SPDR S&P Oil & Gas Exploration & Production ETF XOP

This fund provides exposure to oil and gas exploration and production companies by tracking the S&P Oil & Gas Exploration & Production Select Industry Index (read: Oil Price Slumps: What Lies Ahead for Energy ETFs?).

Zacks Rank: #2
AUM: $2.9 billion
Expense Ratio: 0.35%
Last Week Return: 14%

iShares U.S. Oil Equipment & Services ETF IEZ

This ETF offers exposure to the U.S. companies that provide exposure to firms involved in equipment and services for oil exploration and extraction by tracking the Dow Jones U.S. Select Oil Equipment & Services Index.

Zacks Rank: #3
AUM: $96.4 million
Expense Ratio: 0.41%
Last Week Return: 13.5%

Best Stocks

We have highlighted the best-performing stocks that currently have a Zacks Rank #1 (Strong Buy), 2 or 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Laredo Petroleum Inc. LPI

It is engaged in the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the United States.

Zacks Rank: #3
Value Score: A
Market Cap: $843.6 million
Last Week Return: 38.7%

Talos Energy Inc. TALO

This company is engaged in exploration, development and production of oil and natural gas properties.

Zacks Rank: #3
VGM Score: A
Market Cap: $1.02 billion
Last Week Return: 38.1%

Callon Petroleum Company CPE

It is solely focused on exploration, and production of oil and gas resources in the Permian Basin.

Zacks Rank: #3
VGM Score: A
Market Cap: $1.58 billion
Last Week Return: 26.9%

Nabors Industries Ltd. NBR

It is one of the largest land-drilling contractors in the world, conducting oil, gas and geothermal land drilling operations.

Zacks Rank: #3
VGM Score: B
Market Cap: $700.37 million
Last Week Return: 26.3%

Centennial Resource Development Inc. CDEV

This independent oil and gas exploration and production company primarily develops unconventional hydrocarbon reserves in the Delaware Basin, part of the prolific Permian Basin (see: all the Energy ETFs here).

Zacks Rank: #3
Momentum Score: B
Market Cap: $1.45 billion
Last Week Return: 24.8%


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Nabors Industries Ltd. (NBR): Free Stock Analysis Report
 
Laredo Petroleum, Inc. (LPI): Free Stock Analysis Report
 
Callon Petroleum Company (CPE): Free Stock Analysis Report
 
iShares U.S. Oil Equipment & Services ETF (IEZ): ETF Research Reports
 
SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports
 
SPDR S&P Oil & Gas Equipment & Services ETF (XES): ETF Research Reports
 
Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports
 
Invesco DWA Energy Momentum ETF (PXI): ETF Research Reports
 
Centennial Resource Development, Inc. (CDEV): Free Stock Analysis Report
 
Talos Energy Inc. (TALO): Get Free Report
 
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