By the end of the summer, Bloomberg, CNBC, and JP Morgan predict oil prices could top $100 per barrel.
However, before you buy shares of Exxon Mobil or Chevron, Tradequotex.com financial analyst Saqib Iqbal suggests two profitable stocks trading below $20.
- Oil prices could top $100 per barrel by summer’s end.
- Sable Offshore Corp (NYSE: SOC) expects to restart key operations in September 2024, potentially boosting profitability.
- Vermilion Energy Inc. (TSE: VET) has a potential 61% upside if oil prices rise.
Currently, the oil markets face the biggest threat in 100 years because of the new energy revolution. The demand for oil is beginning to spike, and the US has already invested hundreds of billions of dollars in the industry.
“I am supportive of the market over the period due to tightening fundamentals. There are two stocks that stand to benefit from this more than any other, and Wall Street doesn’t seem to notice.”
The two companies he is talking about are Sable Offshore Corp (NYSE: SOC) and Vermilion Energy Inc. (NYSE: VET).
Sable Offshore Corp (NYSE: SOC)
Sable Offshore Corp. is an American company conducting oil and gas exploration and development operations.
In September 2024, the company expects to restart the Santa Ynez Unit and the Las Flores Canyon Processing Plant, which can boost its profitability.
Interestingly, institutions own the most shares in the company, with 32%. The presence of significant institutional investments in a company is often considered desirable.
Recently, SOC hit a 52-week high at $15.39 and has risen over 20% since the start of the year. Saqib thinks that if oil prices rise, they can reach $20.
Vermilion Energy Inc. (NYSE: VET)
Based in Calgary, Canada, Vermilion Energy is a global oil and gas producer with activities across North America, Europe, and Australia. The company’s geographical diversification gives it a competitive advantage.
From a financial standpoint, Vermilion Energy Inc. has demonstrated positive free cash flow over the previous three years. The company made $376.85 million in sales and had a positive ROE of 11.65% for the first quarter of 2024.
The stock is down by more than 35% since the start of the year. However, its intrinsic values suggest an upside potential of 38% from the current value. If the oil price goes above $100, Vermilion Energy Inc. can even rise to 61% from its current value.
