This week is a big week for oil majors and refiners. The majority of the names under Goldman Sachs’ coverage report Q1 earnings this week.
Analyst Neil Mehta has been using three themes when picking stocks in the space:
- 1. Coastal refiners over mid-continent refiners
- 2. Canadian names with strong free cash flow
- 3. Exxon Mobil Corporation XOM 0.42% as top pick among oil majors as part of a beta barbell strategy
As part of this general approach to the sector, Mehta names four other stocks to buy prior to earnings in addition to Exxon: Cenovus Energy Inc (USA) CVE 1.73%, Suncor Energy Inc. (USA) SU 0.03%, Marathon Petroleum Corp MPC 4.64% and PBF Energy Inc PBF 3.94%.
Mehta noted that forward guidance for these companies will likely be more important to the market than Q1 results.
“Given depressed 1Q2016 crude prices and crack spreads, we believe…
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