Analysts Identify 3 Energy Stocks with Over 20% Upside Potential


In light of recent market developments and the favorable outlook for the energy sector, analysts have pinpointed three energy stocks with significant upside potential, each offering attractive dividend yields.

Halliburton Company 

Houston-based Halliburton Company (NYSE:HAL), the world’s second-largest oil services company, is poised for growth. With a market cap of $35 billion, Halliburton stock has surged nearly 26% over the past 52 weeks, outperforming the sector. The company pays an annualized dividend of $0.65 per share, with a yield of 1.65%. Halliburton trades at favorable valuations compared to its peers. In its latest quarterly results, despite slightly lighter revenue, the company surpassed EPS estimates and remains optimistic about prospects. Analysts maintain a consensus “Strong Buy” rating with an average price target of $47.40, suggesting a 20.2% potential upside.

Noble Corporation 

Noble Corporation (NYSE:NE), a global offshore drilling contractor valued at $6.9 billion, has seen its stock climb 21.8% over the past year. They are offering a quarterly dividend of $0.40 per share, Noble yields over 3% at current levels. While its forward earnings multiple aligns with peers, its price-to-sales ratio is higher. Although Q4 earnings missed estimates, the company’s revenue exceeded expectations, and fiscal 2024 guidance indicates positive momentum. Analysts unanimously rate Noble as a “Strong Buy,” with an average price target of $59.28, implying a 22.2% potential upside.

Schlumberger Limited

Schlumberger Limited (NYSE:SLB), a global leader in energy industry technology with a market cap of $78.2 billion, offers diverse services worldwide. Despite a modest 11.6% increase in the past year, Schlumberger pays an annualized dividend of $0.75 per share, yielding 1.37%. Trading at premium valuations compared to peers, Schlumberger reported strong Q4 earnings, surpassing revenue and EPS estimates. Its strategic focus on AI technology has contributed significantly to its digital revenue. Analysts unanimously recommend Schlumberger as a “Strong Buy,” with an average price target of $68.91, indicating a substantial 25.7% potential upside.

Amidst the current market dynamics and positive industry outlook, these energy stocks present compelling opportunities for investors seeking capital appreciation and dividend income.

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