As the third quarter is set to come to a close next week, investors are starting to look at what companies have been performing well so far this year.
After recording a banner year in 2022, the energy space has not received as much enthusiasm this year. However, the sector is still up 7.02% year to date.
International benchmark Brent crude futures were up 0.15% at $93.44 on Friday morning, while West Texas Intermediate crude futures gained 0.40% to trade at $89.99.
While there are some concerns for global supply concerns due to Russia’s recent fuel export ban, investors may still find value prospects among energy companies that outperformed the Standard & Poor’s 500 Index by at least 15% year to date.
As of Sept. 22, the GuruFocus All-in-One Screener, a Premium feature, found several stocks that had a higher return relative to the index for the period. It also looked for companies with a business predictability rank of at least one out of five stars. The S&P 500 has returned 13.73% so far this year.
Stocks that met these criteria included Marathon Petroleum Corp. (MPC, Financial), Magellan Midstream Partners LP (MMP, Financial), Plains All American Pipeline LP (PAA, Financial) and PBF Energy Inc. (PBF, Financial).
Marathon Petroleum
Surpassing the benchmark index by about 21.30% year to date, Marathon Petroleum (MPC, Financial) has a $61.48 billion market cap; its shares were trading around $153.76 on Friday with a price-earnings ratio of 5.58, a price-book ratio of 2.42and a price-sales ratio of 0.46.
The Findlay, Ohio-based midstream company refines, markets and transports petroleum products in the U.S.
The GF Value Line suggests the stock is modestly overvalued currently based on its historical ratios, past financial performance and analysts’ future earnings projections.
At 77 out of 100, the GF Score indicates the company is likely to have average performance going forward. It received high ratings for momentum, profitability and financial strength, middling marks for growth and a low value rank.
Marathon also has a one-star predictability rank. GuruFocus research found companies with this rank return an average of 1.1% annually over a 10-year period.
Of the gurus invested in Marathon Petroleum, Steven Cohen (Trades, Portfolio) has the largest stake with 0.30% of its outstanding shares. Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Jeremy Grantham (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Ray Dalio (Trades, Portfolio)’s Bridgewater Associates and several other gurus also own the stock.
Magellan Midstream Partners
Beating the benchmark by around 30.63%, Magellan Midstream Partners (MMP, Financial) has a market cap of $13.93 billion; its shares traded around $68.91 on Friday with a price-earnings ratio of 13.73, a price-book ratio of 8.13 and a price-sales ratio of 4.06.
The pipeline operator, which is headquartered in Tulsa, Oklahoma, has storage terminals in the central and eastern U.S. It is in the process of being acquired by Oneok Inc. (OKE, Financial).
According to the GF Value Line, the stock is fairly valued currently.
The GF Score of 76 implies the company is likely to have average returns in the future, driven by a high profitability rating, more moderate growth, financial strength and momentum ranks and a low value grade.
Magellan has a one-star predictability rank as well.
With a 0.25% stake, First Eagle Investment (Trades, Portfolio) is the company’s largest guru shareholder. George Soros (Trades, Portfolio)’ firm and Louis Moore Bacon (Trades, Portfolio) also have positions in the Magellan.
Plains All American Pipeline
Outperforming the index by approximately 27.39%, Plains All American Pipeline (PAA, Financial) has an $11.18 billion market cap; its shares were trading around $15.96 on Fridaywith a price-earnings ratio of 9.85, a price-book ratio of 1.07 and a price-sales ratio of 0.21.
The Houston-based midstream energy company is engaged in pipeline transport, marketing and storage of petroleum and liquefied gas.
Based on the GF Value Line, the stock appears to be modestly overvalued currently.
Supported by high momentum and profitability ratings and more moderate growth and financial strength ranks, the GF Score of 78 means it will likely have average performance going forward. Its value grade is low.
Plains All American has a one-star predictability rank.
There are currently no gurus invested in the stock.
PBF Energy
Eclipsing the S&P 500 by approximately 20.17% so far this year, PBF Energy (PBF, Financial) has a market cap of $6.57 billion; its shares were trading around $53.13 on Friday with a price-earnings ratio of 2.21, a price-book ratio of 1.09 and a price-sales ratio of 0.18.
Headquartered in Parsippany-Troy Hills, New Jersey, the company refines and supplies unbranded transportation fuels, heating oils, lubricants, petrochemical feedstocks and other petroleum products.
The GF Value Line suggests the stock is significantly overvalued currently.
Further, the GF Score of 68 is indicative of poor performance potential due to a low value rank and moderate ratings for momentum and growth. The company’s profitability and financial strength are solid, however.
Like the other three energy stocks, PBF has a one-star predictability rank.
Holding a 1% stake, Simons’ firm is PBF Energy’s largest guru shareholder. Paul Tudor Jones (Trades, Portfolio), Cohen, First Eagle, Lee Ainslie (Trades, Portfolio) and Barrow, Hanley, Mewhinney & Strauss also own the stock.
