5 Oil Giants Near Buy Points As Prices Recover: Investing Action Plan

Here's your Investing Action Plan for Wednesday: what you need to know as an investor for the coming day.

[ibd-display-video id=3032684 width=50 float=left autostart=true] U.S. oil prices have steadied recently, as the Organization of the Petroleum Exporting Countries and top non-members like Russia continue removing oil from the market to ease a supply glut. While U.S. shale companies are expected to offset those cuts with their own production increases, the International Energy Agency still sees a closely balanced market for next year . That is making shares of Exxon Mobil ( XOM ), Chevron ( CVX ), Royal Dutch Shell (RDSA), BP ( BP ) and Total ( TOT ) more actionable for investors. Meanwhile, Winnebago ( WGO ) will report earnings as the RV industry enjoys a revival, helped by some big acquisitions, cheaper towable RVs, and younger consumers.

Stocks to watch

Since hitting lows in June, Brent crude has surged more than 40%, and U.S. crude has climbed more than 35%. That has helped rehabilitate shares of the oil majors and put them near new entry points.

Exxon Mobil is consolidating in a flat base with an 84.34 buy point. Shares closed down 0.6% at 82.44 on the stock market today .

Chevron extended into buy range on Dec. 4 before falling back into its flat base. It still has a 120.99 entry point. Shares rose 0.1% to 119.84.

Royal Dutch Shell and BP are also consolidating in flat bases with buy points of of 65.93 and 41.65 respectively. Shell shares finished at 64.90 Tuesday, and BP was at 40.64.

Total initially broke out in October and has bounced in and out of buy range since then. On Tuesday, shares ended at 54.57, just below an entry point of 55.14.

Oil stocks may see some churn Wednesday at 10:30 a.m. ET, when the Energy Information Administration releases weekly data on U.S. oil production and inventories.

IBD'S TAKE: As an investor, you may wonderwhy buy points are important. The chart action of thesetop stocksoffers an answer.


The RV maker is scheduled to report fiscal first-quarter results before the market opens.

Estimates: Analysts see earnings of 50 cents per share on revenue of $373 million, a 52% jump, according to Zacks Investment Research.

Stock: Shares closed down 1% at 57.40 but are well extended above buying range, having soared nearly 60% since a September breakout.

Rev Group (REVG), another maker of RVs, reported quarterly results late Tuesday and fell short of estimates .


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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