Who Else Wants a Quick 30% on this Oil Stock?

Source

A friend of mine and fellow trader used to do a very funny bit when he gave speeches about his trading strategy.

In full Captain Obvious mode, he’d point to an up-trending stock chart and say “See how this line is moving higher? That’s a goooood thing. It means the shares are going up in value and we’re making money.”

Then he’d put another chart of a collapsing stock on his screen and say ”See how this line on the chart is falling? That’s baaaad. It means the stock is going down and we’re losing money.”

Well, duh. But the simplicity of my friend’s “insight” is the joke. 

We all have a tendency to make stock-picking way too complicated.

Buy strength. Sell weakness. Rinse, wash, repeat.

With that in mind – and despite the weakness we’re seeing among Nasdaq technology stocks and cryptocurrencies lately –  I continue to like what I see in one part of the stock market.

Oil service stocks remain unloved and out of favor. They’re certainly not glamorous.

But hey, they’re going up – 160% in the past year, and 30% in the past month.

While the stocks in this group may waver around a bit short-term, I think the broad trend remains higher still for this sector.

For much of the past decade, oil companies pulled back on their spending budgets for exploration and production, amid too much competition, climate worries, and the associated decline in oil prices. 

Oil peaked at $114 in 2011, and bottomed when prices literally collapsed to below zero for a day or two in last year’s COVID panic.

As we move past the pandemic, oil demand is picking up. But there’s not enough supply – a helpful situation if you’re an oil services company these days.

According to a recent survey by the Federal Reserve Bank of Dallas, economists see a “stark recovery” in spending, with 50% of oil and natural gas companies expected to dramatically increase their capital budgets in 2021.

Likewise, analysts at Barclays Bank expect capital spending to “not only recover by 2023, but upstream spending continues to expand out to 2025 on the back of increasing global demand.”

What about climate change and the ongoing switch to electric vehicles? Turns out that’s also a positive for the oil service sector.

According to the survey, 50% of oil company executives said their companies’ spending plans include carbon dioxide and methane emissions reductions, less flaring (burning of potentially explosive waste gases), and the recycling and reuse of water.

Guess which group of companies they need to hire to carry out those climate-friendly upgrades? 

No wonder when we look at the Sector Relative Strength Matrix on Sector Prophets Pro (the premium data program at True Market Insiders), we see that Oil Services is ranked #4 out of the 45 sectors we track.

Likewise, the sector is in X’s on it's Bullish Percent Index (BPI) chart and on a point-and-figure Buy signal.

Next up is the sector’s Relative Strength (RS) chart. While pulling back in March, the sector continues to be rated Strong when measured against the Equal Weighted S&P 500.

So there’s a lot to like about this sector and the companies in it. 

Among them, one of my favorites is Oceaneering Int’l (OII)

Founded in 1964, this company wrote the book on the highly technical and (in its early days) dangerous work of deep sea hardhat diving for offshore oil platforms. 

In the decades since, the company continues to innovate with new kinds of submersible ROVs – remotely operated vehicles – that handle much of the same kind of work at even greater ocean depths.

These days the company operates across a handful of industry-related businesses, from component manufacturing (like fluid and gas control valves), to digital systems, and startup and maintenance services for offshore platforms. 

Oceaneering also devotes some of its highly technical expertise to government contracts with NASA and the Department of Defense.

The stock checks all the boxes on the Position Key (another premium research tool that comes with Sector Prophets Pro.

Here’s what those blue arrows mean…

  1. The oil services sector is on Bull Confirmed status on its BPI chart.
  2. The sector is strong relative to the market…
  3. Oceaneering’s stock is strong when compared to other companies’ stocks in its sector…
  4. The stock itself is strong compared to the market, too.

And no wonder – Oceaneering International has beaten Wall Street’s earnings projections by substantial margins in three of its last four quarters.

So here’s my bet. I think Oceaneering can rise at least another 30%, and hit $20 a share, over the next 3 months.

I expect two powerful catalysts. 

One, I think Oceaneering will beat estimates once again when it reports Q2 numbers in late July. 

Analysts are expecting the company to generate earnings of $0.06 a share for the period. But given the still-unfinished work of re-opening the global economy, I think it could report profits of $0.10 to $0.12 a share instead.

The second catalyst is oil prices. 

The commodity jumped 35% since the start of the year. In that time plenty of traders went from thinking “oil is dead” to “$100 a barrel by June” – especially after the headlines about gasoline shortages following the recent Colonial pipeline cyber attack.

So it wouldn’t surprise me to see oil prices sell off a bit over the next month to correct some of the bullish froth. 

But as we approach the summer driving season, and with improving news on the COVID front from places like India and Brazil, I think we’ll see oil resume its uptrend – giving Oceaneering’s stock a big push to hit $20 and its highest levels in the past 2 years.

Right now the large institutions seem to like what they  see with OII.

So far this year the big hedge funds have purchased almost 3x as much OII as they’ve sold — $105 million versus $36 million.

Read Next: Most stocks suck. These don't…

Sponsored

Most stocks suck …

But we believe the stocks inside this folder will shine …

This is a confidential list of the only basket of stocks you might ever need to own.

Right now, 5,312 publicly-traded companies offer their stocks to investors.

The problem is nearly all of them are what I call “sucker stocks.”

Maybe 70, at best, are worth your time and attention.

Of those — just the 35 high-profit potential, lower-risk stocks inside this folder — make the grade and are worth owning.

Think I’m kidding?

Then take a look at what an eye-opening study from the Arizona State University School of Business says …

“The entire gain in the U.S. stock market since 1926 is
attributable to the best-performing four percent of listed stocks.”

In other words, 96% of stocks aren’t worth the paper they’re written on. Chances are quite a few of the stocks in your portfolio are in that group.

They’re virtually worthless and draining your returns.

The 35 stocks on this list, on the other hand, are in that 4% of stocks driving the market. They’re the ones you need to own.

That’s why I’ve made special arrangements to get this document into your hands today.

So you can find out what these 35 stocks are — absolutely free — and buy as many shares as you want.

Go here for all the details …

Write This Stock Ticker Down Right Now

Enter your email below to see the the stock name and ticker on the next page.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

Write This Stock Ticker Down Right Now

Enter your email below to see the the stock name and ticker on the next page.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

Write This Stock Ticker Down Right Now

Enter your email below to see the the stock name and ticker on the next page.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

Write This Stock's Name Down Right Now

A new ground-floor opportunity for 8,788% returns has emerged but you must act by December 31st…
Enter your email below to see the the stock name and ticker on the next page. 


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

Write This Stock Ticker Down Right Now

Enter your email below to see the the stock name and ticker on the next page.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

“The Forever Battery”

Secret Startup Cracks the Battery Code — Wall Street Legend Predicts a 1,500% Surge in Electric Car Sales Over the Next 4 Years…

Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

3 High-Yield Dividends for Guaranteed Passive Income

Here are the best dividend stocks for smart investors to secure a steady & reliable “second income”. Our top pick is trading for just $2.
Enter your email address for our free report.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

New EV Set to Disrupt Entire Industry

The Wall Street Journal calls it “an American manufacturing triumph.” It promises to revolutionize the driving experience and hand investors MASSIVE profits.
Enter your email address to receive the name & ticker symbol now.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

Forget 99% of Tickers - Just Use This One

Larry Benedict is sharing a crazy over-the-shoulder “demo” (less than 10 seconds). Learn how to make all the money you need – in any market – using a single stock.
Enter your email address to watch now and get the name of the ticker you need to get started.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

Is Amazon Obligated to Pay You?

Thanks to a U.S. law, you can claim your slice of this jackpot and collect up to $48,000 over the next year.

Enter your email below to find out how.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 Energy Pick

This little-known Silicon Valley company is using AI to do something incredible…
Enter your email address to receive the name and ticker symbol of the #1 tech bargain stock now.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 EV Breakthrough of 2022

Louis Navellier is about to give away the ticker symbol of an overlooked battery company… one set to skyrocket in value as the EV boom gets underway. 
Simply enter your email below to learn the name of this company today…


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Anyone can invest like “The People’s Shark” with as little as $100

You no longer have to be rich, famous, or powerful to become an angel investor. Starting now, it’s possible for you to get involved in these life-changing deals.
Enter your email address for all the details of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Is L.A.S.E.R. The Greatest Tech Breakthrough in History?

A $3.5 trillion megatrend… spearheaded by Elon Musk is bringing what could be the most disruptive, revolutionary tech breakthrough the world has ever seen, with one small company sitting at the center.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

2,467% Return on Israeli Laser Company

Learn the 3 Steps You Need to Protect Your Retirement and One Stock that Could Soar 2,476% in Nine Months.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

One Tweet From Elon Could Blow This Story Wide Open

Last year, anyone who listened to this man about Tesla could’ve made EIGHT TIMES their money. Now he’s revealing how Elon’s NEXT big move will revolutionize ANOTHER massive $23 trillion market.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

$25 to Profit from 20,000 IPOs

Days from now — 20,000 ‘IPOs’ could start flooding the market…
Enter your email address to reveal how anyone with $25 can stake their claim.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

"Bio-Chip" Sparks Potential 199,900% Surge by 2025

Sign up below for all the details on this tiny company being considered a once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works