Chicago, IL – April 14, 2025 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2445093/energy-stocks-take-a-dive-values-or-traps
Welcome to Episode #401 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
In April 2025, after the Liberation Day tariffs were put into place by the United States, crude oil plunged. WTI traded down to $56 a barrel and has been gyrating between $55 and $65 ever since.
While lower oil prices can mean good news for consumers at the pump, it’s bad news for the energy producers who are unhedged and have certain breakeven levels.
The oil and natural gas stocks have gotten hammered due to falling commodity prices and the uncertainty from the tariff turbulence of 2025. Although oil escaped direct American tariffs.
Energy companies are lumped into different categories within the oil industry. In this podcast, Tracey talks about “Big Oil” which are the large, integrated oil companies and the American explorers and producers, or the “E & Ps.”
The Integrated Oil stocks, as an industry, are down just 3.9% year-to-date. But the American E&Ps, as an industry, are now down 27.8% on the year.
The E&Ps, which do not have refining, chemicals, or other divisions to offset their production, are much more volatile when oil sells off.
Just because a stock sells-off and now has a low price-to-earnings (P/E) ratio, doesn’t mean that it’s a true value in the classical sense of the word.
Remember, a true value stock is cheap on a P/E basis, but also has rising earning estimates.
Are the energy stocks cheap, or just traps?
Exxon Mobil is a large American integrated oil company. Shares of Exxon are down 7.1% year-to-date but have finally started sinking in the last month, falling 10.6% in that time.
Exxon appears cheap with a forward price-to-earnings (P/E) ratio of just 14.1. The 2025 Zacks Consensus Estimate is looking for $7.13 but that’s 8.5% under the $7.79 Exxon made last year. One earnings estimate has been revised higher for 2025 and 2 lower in the last week.
Exxon is a dividend all-star, with its dividend currently yielding 3.9%.
Is Exxon Mobil a value or a trap in 2025?
Chevron is also a large, American integrated oil company. Shares of Chevron are down 6.8% year-to-date but have been hit harder over the last month than Exxon. It’s down 14.3% during that time. But there have been dramatic one-day swings the last week.
Chevron is cheap. It has a forward P/E of 13.3. The Zacks Consensus is looking for $10.30 in 2025, which is earnings growth of 2.5% as it made $10.05 in 2024.
Chevron also pays an attractive dividend, yielding 4.8%.
Is Chevron a value after the sell-off or a trap?
EOG Resources is a large cap American exploration and production company. It produces in key basins including the Delaware Basin, Eagle Ford, and Dorado Play. EOG Resources has a strategy of returning at a minimum of 70% of annual free cash flow to shareholders.
Shares of EOG Resources have fallen 14.7% year-to-date but have really taken it on the chin in the last month, declining 16.9%. It’s cheap, with a forward P/E of 9.5. A P/E under 10 is usually considered a dirt-cheap stock.
The Zacks Consensus Estimate for 2025 is looking for $11.09. EOG Resources made $11.62 last year so that is a decline of 4.6%.
EOG Resources is currently paying a dividend yielding 3.5%.
Is EOG Resources a value or a trap in 2025?
Tune into this week’s podcast to find out.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。