TPL - 3 Energy Stocks to Buy Right Now
Warren Buffett once said to "be fearful when others are greedy and greedy when others are fearful." But sometimes, a reasonable amount of fear can be a good thing.
The transition from oil and coal to renewables, lower renewable costs , government subsidies for renewable power generation and electric vehicles, environmental concerns, and other headwinds have culminated into widespread investor pessimism toward oil and gas. The result is that energy was the worst-performing sector in 2018, 2019, and 2020.
The industry has its challenges, but there are opportunities if you know where to look. 2020 proved the importance of financial health, namely low debt. The oil and gas industry is notoriously capital-intensive. But companies that can operate with less debt can handle short-term earnings collapses, which are unavoidable for commodity-driven businesses. Pioneer Natural Resources (NYSE: PXD) , Chevron (NYSE: CVX) , and Texas Pacific Land Trust (NYSE: TPL) are all financially healthy businesses. Here's why all three are great buys now.
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3 Energy Stocks to Buy Right Now