Wall Street Turned Bullish as Oil Prices Rebounded
(Continued from Prior Part)
Top stocks
Stocks at the top of the SPDR S&P 500 ETF (SPY) on December 29 were Chesapeake Energy (CHK), Denbury Resources (DNR), and Consol Energy (CNX). These stocks have returned 12.5%, 6.4%, and 4.7%, respectively, on the day.
The following graph presents the stock price movement of Chesapeake Energy (CHK) and Denbury Resources (DNR) since October 2015.
The energy stocks received a boost due to the rebound in oil prices. Citing an increase in demand for oil and natural gas owing to cold weather, accompanied by the fall in the natural gas inventory and the rise in natural gas prices, Chesapeake Energy (CHK) soared on Tuesday, December 29. CHK is a producer of oil, natural gas, and natural gas liquids in the US.
The beta value for CHK is 1.49. It is one of the volatile energy stocks with a trailing-one-year yield of -76.7%. However, the stock has performed well in recent times, and its trailing-five-day return was 12.8% as of December 29. CHK traded at $4.58, which crossed its 20-day moving average but was below other averages. Its 100-day and 50-day moving average values are $7 and $6, respectively. The analyst stock price target for CHK is set at $6.88, implying an upward growth potential of 50%. The stock has received three “buy,” eight “sell,” and 24 “hold” recommendations. The S&P has rated the stock as ‘B’ with a ‘negative’ outlook.
Bottom stocks
Stocks at the bottom of the SPY on December 29 were Southwestern Energy (SWN), Kinder Morgan (KMI), and Allegheny Technologies (ATI). These stocks have yielded -1.3%, -1.1%, and -0.8%, respectively, on the day.
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