3 Energy Plays to Watch

Karim Rahemtulla By Karim Rahemtulla
Head Fundamental Tactician, Monument Traders Alliance

Market Trends

Oil prices recently hit five-month highs.

I’ve talked about the resurgence in energy prices before, and now you’re starting to see energy stocks begin to move!

I’ve got my eye on a bunch of companies in this sector, and today I’m going to share them with you. However, it’s not what you know that gets you ahead, it’s how you use that information.

In the coming weeks, many companies will report earnings, leading to a perfect setup for our War Room subscribers.

U.S. Silica Holdings (NYSE: SLCA) is probably the most volatile stock in the energy sector. It supplies frac sand to the industry, and its fortunes rise and fall with oil production and prices.

When prices are higher, more oil is produced and more sand is used.

Prices are higher now, and shares have begun to rally after crashing from $30 to $12 in late 2018.

Schlumberger Limited (NYSE: SLB) is the No. 1 name in oil services companies. After the company’s shares fell by 50% in 2018 and early 2019, investors wised up to the tremendous value in this play.

Oil producers and explorers need companies like Schlumberger to aid in exploration, drilling and maintenance – regardless of energy prices.

So higher energy prices can create meaningful upside for this company.

Encana (NYSE: ECA) shares are experiencing a lot of insider buying, and they’re finally trying to claw their way higher.

This could be the sleeper pick in the industry after the company’s recent acquisition of Newfield Exploration, a petroleum, natural gas, and natural gas liquids exploration and production company.

The acquisition is immediately accretive to Encana’s earnings and provides the company with a huge scope of operations in all the major shale regions of the United States.

Action Plan: With each of these companies reporting numbers in the next 60 days and oil prices moving up, this could be one of the most exciting times in years to play energy stocks.

That is exactly what I will be doing in The War Room!

Yours in smart speculation,

Karim