Sign in Subscribe

Energy 2023-08-22: Unchanged at "STRONG" strength rating (4th strongest of 9 levels), previous move was DOWN

Brian Degracia

• 2 min read
Energy 2023-08-22: Unchanged at "STRONG" strength rating (4th strongest of 9 levels), previous move was DOWN
Energy industry performance for the trading week ending 2023-08-22. Minimal change with Pipelines and Refining/Marketing both strengthening by one strength level.

Here's my review of Energy for the trading week ending 2023-08-15.

Then, I wrote the following:

One week of weakness has dribbled into two. Over the trading week ending 8/15/23, 48 of these 152 Energy stocks rose while 104 fell. For the previous trading week ending 8/8/23, 81 rose and 71 fell. The weakness became more pronounced during this past week.

The decline has ceased for the moment with the industry flat for the just-completed trading week. About half the industry was positive during the week, underscoring the industry's flat nature overall.

For reference, here are 1-month and 1-year oil price charts:

Oil prices have chopped between the high $60s to the mid-$90s/barrel over the past year, staying mostly between $70 and $80 since late 2022. The recent post-June rise from the high $60s to the low/mid $80s seems significant in this context. 

The industry was led by ESTE/Earthstone Energy +27% for the week. It has a Strongest rating within the Independent Oil & Gas sub-industry which strengthened slightly during the week and whose last move was UP. Why did this happen? Because of the other double-digit gainer during the week - PR/Permian Resources Corporation +10%. PR announced 2 days ago it was buying ESTE in a $4.5 billion acquisition.

ESTE had been strengthening for the past two months, jumping 16% Monday 8/21/23 after enjoying a 35% gain from 5/31/23 through 8/18/23. Interestingly, PR had increased 38% itself 5/31/23 through 8/18/23 and has increased 4% since then. This bucks the typical trend of a buyer's price declining.

On the other side of the ledger, BORR/Borr Drilling Limited was -11% and is -19% from 8/1/23.

Pipelines has been active over the past 4 weeks, moving up then down and ending up back where it started.

Leaders and Laggards

Current strongest and weakest stocks are shown below. These are of most interest as the downtrodden are prone to large (if perhaps temporary) pops while the strongest have been leading the charge for their sub-industries.

There is a 50:12 ratio of Strongest vs. Weakest stocks, minimally changed from last week's 46:11 ratio and right about the previous week's 50:7 ratio.

Sign up for more like this.

Enter your email
Subscribe