Following this year’s World Economic Forum meeting in Davos, Switzerland, President Trump laid out several new policies for the entire world – and the financial markets – to see. One of the main pressing points at the conference was the need to lower oil prices and the new president’s demand to cut interest rates immediately, leaving investors with some conclusions to draw.
The first is that lower oil prices may negatively impact the energy sector; However, the risk versus reward system in this area seems more favorable than ever. After a few years of downward price action, what may seem like a bearish development is actually a new bull market in disguise.
The reasons for this relate to activity, new trade relationships, and a new agenda to bring the domestic manufacturing sector back to the United States.
Individual investors can connect the dots today and land on the right side of history by picking the best names in energy and outperforming the market in 2025. These names include companies like Occidental Petroleum Company New York Stock Exchange: Oxy, Chevron company New York Stock Exchange: CFXAnd even TRANSOCEAN LIMITED New York Stock Exchange: Reg. This selection blends value, momentum and growth to meet the needs of different portfolios in this new round, leaving investors spoiled for choice.
For value seekers: Occidental Petroleum stock fits the bill
Occidental Petroleum Company stock forecasts today
$62.19
26.25% upHe catches
Based on 21 analyst reviews
| High expectations | $78.00 |
|---|---|
| Average expectations | $62.19 |
| Low expectations | $51.00 |
Details of Occidental Petroleum’s stock forecast
This local oil producer’s stock trading has fallen 70% from its 52-week high, leaving investors fearful of a potential continuation of the downward price movement. However, they can count on the support of Warren Buffett, the most famous investor in the market.
Buffett himself has picked Occidental Petroleum shares to express an optimistic view on the oil market this year. He bought up to 29% of the company when he was increasing his cash position and reserves. That’s why investors might think about this for themselves as well.
The lower price and valuation discount compared to the industry will allow investors to capitalize on the double-digit upside. Occidental Petroleum shares are trading at a price-to-book (P/B) multiple of 2.0x today, less than half of the energy sector’s average valuation of 4.4x today.
That’s why Mizuho analysts found it easy to maintain a valuation of $70 per share as of December 2024. To prove this view correct, Occidental Petroleum stock would have to see an upside of up to 38.8% from where it trades. Today, giving investors their fair share of value.
Chevron stock’s momentum continues
Chevron stock forecast today
$175.27
12.63% upModerate purchase
Based on 17 analyst ratings
| High expectations | $195.00 |
|---|---|
| Average expectations | $175.27 |
| Low expectations | $160.00 |
Chevron stock forecast details
Chevron shares represent the international oil play, which has also gained market favor through bullish momentum. As of January 2025, the stock is trading within 10% of its 52-week high, and if the price action is any indication, this is the first upside leg investors can count on.
Knowing that the recent declines in oil prices are only temporary, even bearish traders have decided to leave the scene recently, as investors can see in the 4.6% decline in short interest over the past month alone, a sign of bearish capitulation at its best. Wall Street analysts also came to confirm the reasons why these short sellers might flee.
Current earnings per share (EPS) forecast is set at $3.90 in the same quarter next year, which represents a massive 55.3% increase from today’s level of $2.51. Given that stock prices tend to follow underlying EPS growth, it would not be surprising for investors to see analysts from UBS Group emphasizing the potential for double-digit upside.
As of December 2024, these analysts maintained a Buy rating on Chevron stock, raising their ratings to a high of $195. This gives investors the opportunity to add up to 24.6% to their portfolio if they choose to buy.
Opportunity to up 100% in Transocean shares
Transoceanic stock forecast today
$5.94
54.60% upHe catches
Based on 10 analyst ratings
| High expectations | $8.00 |
|---|---|
| Average expectations | $5.94 |
| Low expectations | $4.50 |
Transoceanic stock forecast details
Knowing that the United States and China, which together account for more than 65% of global oil demand, will see their industrial and trade activities rise in 2025, investors can easily arrive at a bullish thesis for Transocean stock.
As a provider of deepwater drilling services and equipment and tapping into oil demand before anyone else, this $3.5 billion company has accumulated Accumulation amounts to $9.3 billion In new orders from customers looking to move beyond the production demand curve once oil prices rise.
That would put the company’s valuation at a significant discount today, so analysts see the stock’s 56% rise from its 52-week highs as an easy boost. With a target price of $8 per share in the upper range, closer to the demand realities Transocean already faces, investors are exposed to a net upside of 106% from where the stock is today.
Before you consider Transocean, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and Transocean wasn’t on the list.
While Transocean currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
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