US Energy Stocks with Bad Sell-side

Published By : 07 Jan 2015 | Published By : QYRESEARCH

Wall Street has gone against the energy sector as stock analysts continue cutting down its earnings estimates, while slipping oil prices add to the sector’s 2015 woes.

The end of June 2014 saw the energy sector slip by 23 per cent in the S&P 1500. Despite that, stock prices may not actually account for the substantially reduced forecasts for the earnings of the sector. This holds specially if the oil prices continue to fall.


From the 10 sectors in the S&P 1500, the worst analyst sentiment data was ranked by Thomson Reuters StarMine. They made use of a model that lists equities by aggregating metrics that involve all the variations in estimates for company revenue and earnings per share.

The energy sector ranked last on Tuesday, with the sector’s components averaging a ranking og 14 out of 100. The ranking slipped from 26 of the previous day. Chevron Corp., one of the energy sector components, is the second ranking U.S. company for energy, and ranked first in the analyst revision score. This implies much lower estimates for Chevron by analysts than for the other 99 per cent of the companies.

The Q4 estimates for Chevron from EPS have slipped dramatically in the December. Analysts have reduced earnings predictions by an average of 14.3 per cent during the time. The stock price had actually increased by 1 per cent during this time.

33 per cent of the energy sector’s market capitalization was held by six of the top 10 companies. They all have a ranking of at most 9 in the analyst revision score.
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