President Donald Trump’s decision to pull out of the Iran nuclear deal has pushed crude oil back above the $71-a-barrel threshold on fears the impact of economic sanctions (to say nothing of the threat of a military confrontation) on the output of Iranian crude into the marketplace.
Adding to the tailwind for energy markets was a surprise inventory drawdown despite soaring U.S. shale production.
This is a perfect combination for embattled U.S. producers. Prices are rising. OPEC is continuing to hold output down amid an ongoing effort to push up prices. And the possible prevention of Iranian oil coming to market is set to reduce market share.
A number of smaller U.S. oil and gas players are set to be the big winners in all this. Here are seven ready to move higher quickly.
Hot Bank Stocks To Buy For 2019: Brookfield Renewable Powerr Fund(BEP)
When investors are looking at the energy industry today, there’s a lot to consider. Volatile oil prices can make big oil stocks risky, changing utility markets have hurt formerly safe utility companies, and even natural gas isn’t the profitable business it once was. But renewable-energy production around the world is growing, and companies that own renewable assets can generate consistent cash flows capable of funding dividend growth for years to come.
One of the best dividends for in-the-know investors is Brookfield Renewable Partners, a yieldco that owns 16,000 megawatts of generating capacity around the world. Eighty percent of that capacity is hydropower, but the company is adding more wind and solar assets after acquiring a 31% interest in TerraForm Global and a 16% interest in TerraForm Power (NASDAQ:TERP).
What’s unique about Brookfield Renewable Partners is that it’s not as tied to the idea of issuing stock to fund acquisitions as many yieldcos have been in the past. Instead, it expects to grow its dividend 5% to 9% annually and use any excess cash from the business to grow cash flow organically. If you look at the dividend over the past decade, you can see that the strategy has resulted in steady growth:
Energy markets can be volatile, but a renewable-energy company like Brookfield Renewable Partners usually buys projects backed with long-term contracts to sell energy to utilities under a set rate. Yieldcos that can do that well will be big winners for investors, and that’s why Brookfield Renewable Partners is a great dividend stock today.
Hot Bank Stocks To Buy For 2019: Intel Corporation(INTC)
Over the past year, Intel Corporation (NASDAQ:INTC) has turned its business around from a computer-centric company to a data-centric company. That transition has played out almost perfectly, and INTC stock up more than 45% over the past year.
These gains will continue.
Intel stock has been weighed by Apple-related issues recently. Namely, weak iPhone demand as well as Apple moving away from Intel as a chip supplier for certain products.
But such concerns are rather meaningless in the big picture. As was the case with MU, Intel’s growth narrative is all about cloud data-centers and IoT devices. These markets are massive and only growing. Thus, so long as demand remains robust in those markets, iPhone-related weakness is largely meaningless.
Right now, demand in those markets isn’t showing any signs of wavering. INTC just reported really strong quarterly numbers, led by strength in data-centers (revenues +24%) and IoT (revenues +17%).
Meanwhile, INTC stock remains pretty cheap considering its exposure to big secular growth markets. The stock trades at under 14-times forward earnings. That is dirt cheap for a stock of Intel’s nature.
Consequently, this red-hot chip stock could stay hot for a lot longer. The bull thesis continues to gain momentum as the data-centric business pivot continues to yield materially positive results. Meanwhile, downside is protected by a relatively cheap valuation. Mitigated risk with a strong bull thesis is a healthy backdrop for this stock to keep heading higher.