State owned YPF is one candidate among the best energy stocks populating the MarketSmith Blue Dot Scan on Monday. The stock surged 10.22%, nearing a breakout pivot of $13.21 and still in the buy zone. In addition, YPF is trading at a discount to operating earings, currently 2.34x. The company normally trades around 15x. Sales grew 15% in the most recent quarter, while 3yr. avg. sales is growing at 15%.
Valuation grades, enterprise value vs. “foward” sales or
- EV/FW Sales recieves an A-
- EV/FW EBITDA A-
- Price/Sales A-
Best Energy Stocks Breaking Out?
Pioneer Natural Resources (PXD) surged 5.8% on reports Exxon Mobil (XOM) has held early takeover talks with the shale play. This collective interest shows the value of companies that have properties in the Permian Basin, Bakken Formaton, and Williston Basin.
YPF ADR has seen a price % change of 27.86% in the last 4 Weeks which is reflected in its RS Line upgrade to 99 on Monday. Volume was above average at 5x. The latter usually signals institutions are accumulating shares of the company in question.
If institutions continue buying YPF shares, it has the potential of becoming one of the best energy stocks to play in the short-term. Earnings are in early May.
That’s a bullish combination and a prime way to spot new market leaders.
Remember, the RS line measures a stock’s price performance vs. the S&P 500 and is the blue line on every IBD chart. If the market’s down, good stocks will outperform by treading water. When the market rebounds, the stocks with best relative strength bounce back stronger than the market.