Some oil stocks remain strong despite the general market pullback after the postelection rally. Enterprise Products Partners (EPD) and Riley Exploration Permian (REPX) are two energy plays that reached new highs on Friday and both stocks are in or near buy zones.
Energy stocks, including oil exploration and drilling names, have rallied since Donald Trump won the presidential election. He is thought to be more petroleum production friendly with his “drill, baby, drill” campaign slogan.
Enterprise Products Partners climbed around 1.1% Friday in heavier-than-average volume while Riley Exploration reversed lower about 0.7% after reaching highs.
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Energy Stock Hits High Not Seen In Years
Enterprise Products Partners provides transportation and storage services to producers of natural gas, natural gas liquids and crude oil.
The stock was already on an uptrend when it got an extra boost following the Trump win on Nov. 5. Enterprise Products stock broke out of a flat base with a 30.05 buy point and is in the 5% buy zone up to 31.55. The stock reclaimed its 10-week moving average and is at nine-year highs.
On Oct. 29, Enterprise reported that its third-quarter profit rose 8% while revenue grew 15%. Full-year earnings projections show 5% growth for 2024 and 7% for 2025.
Oil-And-Gas Stock Hits Buy Point, Then Fades
Riley Exploration Permian broke out of a long, undefined base with a 34.90 buy point Friday, but retraced below the entry by midday. Shares have climbed around 25% since Nov. 5.
The stock’s IBD Relative Strength Rating rose to 88 from 35 four weeks ago. On caveat is that Riley’s stock trades thinly, with an average daily volume of around 93,400 shares.
The company missed third-quarter adjusted earnings and sales estimates on Nov. 6. Profit dropped 6% while sales sank 5%. But fourth-quarter estimates show 123% earnings growth, followed by 67% in the first quarter.
Revenue also looks to improve, with 7% growth forecast over the next two quarters. Full-year 2024 profit estimates call for a 23% lift. Riley stock holds a 93 Composite Rating.
Riley performs exploration and production for oil, natural gas and natural gas liquids in the Permian Basin, located in West Texas and southeastern New Mexico.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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