Three energy stocks with the potential to gain 20% this year

Three energy stocks with the potential to gain 20% this year

Energy stocks finished 2019 in the red, losing significant amounts. But it seems they made a turnover this year, gaining 6.61% in January 2020. Several factors caused this unexpected rise. Low energy prices, as well as tax cuts, enabled companies to upgrade their infrastructure while the costs remained the same for customers. As a result, their dividends beat out the yields on Treasury bonds.

While last year wasn’t so kind for energy stocks, experts think that the recent boost is only the beginning for some of them, as they have the potential to gain much more during 2020.

Here are three stocks, which Wall Street recommends as a good buy

Azure Power Global designs, builds, operates, and maintains solar energy projects. It mostly works on utility and commercial-scale photovoltaic power plants, among other things. The company first started to run in 2009. While its India-based, Azure now has dealings across the subcontinent.

Analysts expect that its revenues will show strong yearly growth of 26.5%, reaching $44.2 million. Jefferies’ analyst Lavina Quadros noted that Azure’s asset portfolio is well-diversified, which will lead the company to substantial gains. So far, its average price target is $19.60. According to the experts, it has 57% upside potential.

Liberty Oilfield Services is the second strong buy stock. It offers back-up for the oil fracking industry, providing sand, water, piping, chemicals, and even the engineers. Its revenues were down from experts’ estimates by 5%, but while the stock is down, it’s a good time to buy it.

Citigroup analyst Scott Gruber put an $11.50 price target on the stock; this means that gain would be 50% for buyers. Experts predict this stock will show significant gains.

Apergy Corporation also provides oilfield services. But it focuses on lift equipment, such as cavity pumps, rod pumping and so on. It had substantial earnings despite the pressure from low oil and gas prices. The stock’s revenue was $278.4 million last.

Experts think that while it is oversold in the high-$20s, this stock is still a strong buy, as it has lots of advantages against its competitors. Stephens analyst Tommy Moll set a buy rating with a $34 price target, with a 27% upside potential.