CNBC’s Jim Cramer on Monday went over the top-performing power shares within the S&P 500 this yr.
“While energy was the only winning sector this year, all of these stocks have come down substantially from their highs thanks to the recent declines in oil and gas. I don’t see energy putting up another monster performance next year, but I do think it could do a lot better than Wall Street’s expecting,” he stated.
Here is Cramer’s record:
Cramer stated he likes the corporate’s place within the Permian Basin and its funding in carbon seize expertise. He additionally defined that the inventory was in a position to rally this yr due to its excessive sensitivity to grease costs, which shot up earlier in 2022 when Russia invaded Ukraine. He added that whereas traders ought to take into account proudly owning shares of the corporate in the event that they suppose the worth of crude can maintain regular or rally, he prefers shares with huge dividends, resembling Devon Energy or Coterra Energy. Occidental inventory is up about 121% yr to this point.
Shares of Hess have climbed greater than 81% this yr, however Cramer stated the corporate’s mixture of home and worldwide tasks makes its inventory too sophisticated to personal. He added that whereas Hess inventory tends to shoot up when oil costs rise, it tends to fall when costs go down, which may very well be an issue if crude stays bouncing between the mid-$60s and mid-$70s.
Exxon inventory is up greater than 73% this yr, with sizable development in income and earnings boosting its stability sheet, Cramer stated. He added that whereas these numbers ought to come down in 2023 as a result of oil and fuel have pulled again from their highs, the inventory will probably proceed to carry out nicely.
The downstream operator runs refineries and fuel station, so its inventory works nicely when the worth of oil falls, Cramer stated, including that the inventory has tumbled greater than $15 from its highs over the previous few weeks. Shares of Marathon Petroleum are up about 74% yr to this point.
The pure fuel inventory is up about 69% this yr and has Cramer’s stamp of approval, since he expects pure fuel costs to be much less risky than oil costs.
Disclaimer: Cramer’s Charitable Trust owns shares of Devon Energy and Coterra Energy.