DVN Long - Oil sector recently entered a stage two advance
I can see that the vast majority of market sectors have been in a continued bullish advance for quite some time but the oil industry has lagged. However, around mid November 2020, the sector finally broke up out of a range and above the 200 day moving average. Now many names are up trending quite well, especially in the "oil and gas E&P" sub sector of the oil industry.
I compared the names in that sub sector that had entered a stage to advance and possessed market caps over 2 billion, then narrowed down my selection to 2 names, DVN and XEC . Initially I came down to these two because I liked their charts but also, they stood out for their lower debt/equity compared to their peers . Following this, I compared their charts and volumes in addition to the following metrics :
1) Quick ratio's
2)Debt over equity
3) EPS (This year and next )
4)Gross Margins
5)Institutional ownership %'s
6)Forward P/E
7)Price to book
The names both scored well but I think DVN is the winner and the main things that stood out were :
Much better quick ratio ( DVN's 2.3 compared to XEC's 0.9)
EPS forecast shows way more growth this year is expected ( DVN eps this year expected to be 2088% higher compared to XEC's 355%)
DVN offers a slightly better price to book .
DVN has significantly more liquidity.
Having said that , both names are expected to report a positive eps for their upcoming quarterly reports which has not happened for several quarters and I think they will both do well. I think that they both have much more upside potential as does the oil sector in general, which is pretty fresh into its advancing stage .
I have included the chart for the oil refiners etf , "CRAK" , on the chart which as you can see has also moved from a stage one to a stage two advance . USO shows the same pattern too .
Good luck ~
I compared the names in that sub sector that had entered a stage to advance and possessed market caps over 2 billion, then narrowed down my selection to 2 names, DVN and XEC . Initially I came down to these two because I liked their charts but also, they stood out for their lower debt/equity compared to their peers . Following this, I compared their charts and volumes in addition to the following metrics :
1) Quick ratio's
2)Debt over equity
3) EPS (This year and next )
4)Gross Margins
5)Institutional ownership %'s
6)Forward P/E
7)Price to book
The names both scored well but I think DVN is the winner and the main things that stood out were :
Much better quick ratio ( DVN's 2.3 compared to XEC's 0.9)
EPS forecast shows way more growth this year is expected ( DVN eps this year expected to be 2088% higher compared to XEC's 355%)
DVN offers a slightly better price to book .
DVN has significantly more liquidity.
Having said that , both names are expected to report a positive eps for their upcoming quarterly reports which has not happened for several quarters and I think they will both do well. I think that they both have much more upside potential as does the oil sector in general, which is pretty fresh into its advancing stage .
I have included the chart for the oil refiners etf , "CRAK" , on the chart which as you can see has also moved from a stage one to a stage two advance . USO shows the same pattern too .
Good luck ~
Comment:
Entered a position in this today at 23.07 with a stop set at 20.86
艾力克~