Get READY for What's Next. These 3 Stocks Could Save Your Portfolio

The energy market is moving again, but is it  still a good time to be thinking about these as   long-term investments? Joining us today is one of  our energy experts, Mark Likenfeld with the Oxford   Group. Mark, so glad to have you back on the  show. I know you've been on a few times talking   about energy over the last year or so. The last  time we had you on talking about energy stocks,   was the very start of March, which was also the  start of this Iran conflict that's really been   moving the energy market ever since. So, let's  talk about uh from the start of that conflict to   what seems to be a move towards peace or at least  that's what we hope. How do you think the the oil   market and the energy market could be reacting to  to what's going on geopolitically right now? Well,   it's interesting. It's almost as if the oil market  um is is really discounting a lot of the headline   news. So, for example, about a week ago, the  president, as he often did, announced that they   were close to a peace deal. But then the following  day, violence continued and there was some more   bombing uh for the first time in a while actually  and oil prices actually sold off a little bit. So   it it seems as if at this point it is, you know,  truly the the the financial fundamentals that are   driving oil prices as opposed to simply  headlines. And I think what it means is,   and you're probably very aware of this, as as are  your viewers, that even once peace is achieved and   they open up the straight, it's not like you just  flick on a switch and suddenly all the oil is back   in the refiners and and everything goes back to  normal. It's going to take months and months for   everything to to return to somewhat normal levels.  So I think that is what the oil prices are pricing   in and that they could certainly come down as a  result of peace, but I don't think we're going   to go back to the $50, $60 oil that we were  at, you know, 6 months ago or what have you.   And that is why we are going to be looking  at three different oil energy related stocks,   new names to talk about today, and why now  is an interesting time to be looking at them,   especially as a potential long-term investment  for your portfolio. We'll get into those three   names in a minute, but I want to talk about the  three energy stocks that you talked about back   in March when we had you on the show talking  about energy and how well those three names   have done in the market since then, even with the  pullback that we've seen in energy the last week.   Let's talk about those names. I mean, the the  performance has been really great. It's really   no surprise because we have seen oil prices rising  and investors starting to pay more attention to   energy after the sector really had been beaten  up for quite some time. So, u yeah, Enterprise   Products Partners uh has performed very well and  they just reported a strong first quarter. Again,   not too surprising. Uh distributable cash flow is  up 5%. uh they they easily cover their dividend.   They have a really nice dividend yield as you know  I like dividends. Uh so they have a 5.8% dividend   yield and and that uh distributable cash flow is  almost double of what they pay out. So it's it's   not going to be any problem for them to continue  to pay and raise their dividend as they have done   for over 20 straight years. Right? That one had  solid performance since we talked about it back in   March. The other two names that we talked about,  if you look at the charts, you can see right   after that, both stocks uh spiked significantly  again just in a two-month period. At one point,   uh APA that you talked about was up over 37%  before it started to pull back. It's still up   almost 15% and again, that's just in a 60-day  timeline. So, let's talk about what about those   names? Is it just the Iran conflict that that  boosted those so well in a short period of time or   are there other fundamentals that you're looking  at when recommending these energy stocks? Yeah, so   uh APA and Marathon Oil, those are the other two.  Uh so those were are really margin stories. Uh APA   has been cutting their capital expenditures. It's  expected to cut by about 10% this year. uh and   marathon oil also uh refineries when oil prices  are volatile and and especially going higher   their margins increase and so naturally as these  oil prices are growing uh that's really boosting   these companies margins now even if oil prices  were not spiking or hadn't spiked back when it did   I really like these because these were going to be  you know margin increase stories uh and so anytime   a company is able to to grow their margins that's  positive and Then when oil prices increase that   just you know compounds the margin expansion as  well. So that's that's what I really liked about   them. And even if oil prices didn't rise I think  there's still really good stories. APA of very   very good value. It's still trading below seven  times forward earnings. So really really cheap   stock and and I think there's a lot of potential  still left in in these names regardless of whether   oil prices uh you know continue to rise. they  fall, obviously rising oil prices will be better   for these stocks and their businesses, but the  fact that they are growing their margins, uh,   is is really important. Yeah, that leads me into  what we're going to be talking about with the new   list you have and these other three names that you  talked about. We can see they're all on a pullback   right now. So, share a little bit about your your  thought process on on getting into these energy   and oil stocks right now when we're starting to  see that pullback and the potential for a pullback   in oil prices if that does happen. I think  what's important here is is when the war started,   prices spiked. Yeah, people quickly turned to  energy stocks, but generally speaking, everyone   is still so focused on technology for good reason.  Technology stocks have been white hot, but it's   going to be the energy companies that allow all  these tech companies to run in the future. I mean,   they're expecting uh about 3 and a.5% annual  increases in the demand for electricity in the   United States through 2030. That's actually  a quite a big number when you think about   electricity demand. It's kind of like, you know,  thinking about the the picks and shovels idea,   which goes back to the gold mining days where  certainly some people struck gold and and got   to shout Eureka, but it was the companies or  the businesses that were selling the picks,   the shovels, the Levis's jeans, uh, that were  the ones that really made a lot of money. So,   with technology, with AI, I I see energy  as kind of that picks and shovels business.   Yes, the technology is exciting. There's  is going to be money to be made there,   no doubt. But you're going to need energy and a  lot of it in order to fuel these businesses and   allow these data centers to run. Yeah, this is one  of the biggest bottlenecks in the market right now   for actually making that AI work. So that the tech  that everyone's so excited about depends on energy   and we haven't seen some of these names rise as  quickly as the demand that's out there would show   that they should anyway. So, we're going to get  into these three names that you're looking at now   that no matter what happens with the conflict or  the price of oil, there's still a ton of potential   in these names, and right now, they seem to be  pulling back. Another benefit of all of the stocks   that Mark and his team at the Oxford Club look at  is these are great long-term investments because   of the dividend. As Mark already mentioned, he  is absolutely uh a huge proponent of dividends.   And he has a special report he's offering for  free just for our market beat viewers today.   This is the top 12 dividend stocks that he  recommends for the people in his program. So,   you can scan the QR code or click the link in  the description to get that free report right   now from Mark and his team at the Oxford Club. All  right, Mark, let's get into your list now. The new   list of energy stocks for today. What's the first  company that you're looking at? So, the first one   is Hallebertton and it has the lowest yield of the  stocks that I'm talking about. So, 1.7% yield. So,   you know, you're not investing in this one, you  know, just for the dividend, but it does have a,   you know, a nice little dividend to go along with  the capital appreciation. Uh, the stock's been   in a really nice uptrend all year. So, it hasn't  just been the spike in oil prices from, you know,   a few months ago that have been responsible  for the the stock's gains. It's it's just in   a nice steady uptrend. And I love stocks that are  just kind of slowly climbing up and to the right.   uh that that's kind of a very sustainable move  versus, you know, something that just spikes   higher uh and that you hope will will continue. Um  they have increased activities outside the Middle   East. So they're they're not, you know, they're  not reliant on the Middle East. Uh they do a lot   of work in the United States and offshore of the  United States. So that's really important because   you certainly want to diversify your risk and not  be super concentrated in the Middle East. They are   involved with fracking in the US and we know that  the president and the industry and Americans want   oil and gas coming out of the ground in America,  especially after what we just saw in the straight   of Hormuz. It's more important than ever that  we're self-reliant in our oil supply. So,   uh, now to be clear, they provide the equipment,  the personnel for the oil drillers. So they are   not the the Exxon Mobile that are are pulling  the the the oil out of the ground. They're the   ones providing the equipment to do it. So as  long as all the big oil drillers are doing that   uh they have to get their equipment from somewhere  and they get it from companies like Hallebert and   uh their earnings are projected to grow 23%  uh this year uh to $2.91 a share and then   another 15% in 2028. So uh this is a very much  an earnings grower and they're only trading at   16 times earnings. And if you think about it,  if this traded just up to 20 times earnings,   which is not an exorbitant value, and if  they earned, let's say, just $3 a share, um,   which is is less than the the concessance estimate  for 2028, you know, then we're talking about a   $60 stock. So, it would be a really nice move.  It's not a double or a triple in a couple years,   but it would be a pretty impressive move for  a big company uh over the next two years.   Yeah, this is really a picks and shovels play in  the oil and gas sector as well. Like you said,   they provide the equipment that's needed. And we  had some guests on the channel uh just a week ago   who were talking about rig count numbers and  how this is the first time in in over four   years that we've seen the number of new oil  rigs being built in the US increasing. So,   exactly what you mentioned of of that that move  towards onshoring more of our oil supply to the   US means that there's more money going into  building these rigs. The big oil companies   are making that investment and even if the the the  oil story and oil prices change, that investment's   already underway, which means Hallebertton will  be getting paid. Right. Absolutely. And you know,   these things typically lag a little bit. So as  oil prices are high naturally oil companies want   to drill more so they get into these contracts  with Hallebertton and other companies when oil   prices decline it takes a little while. So even if  pieces achieved even if oil prices fall it's not   going to be like suddenly the switch is turned off  for companies like Haliber and these things take   a long time. They're they're they're pretty long  cycles. So uh I do like this for the short term as   well as for the long term. Yeah, let's talk about  the recent volatility. Really just like you said,   it's been up and to the right for quite a while  over the whole last year. It's up uh over 90ome   percent for a large company. That's a really good  year increase. But let's talk about the pullback   and the volatility it's seen really around these  headlines with Iran and what's happening with that   conflict and in oil prices. Uh do you think it's  a nice entry point? Could we see even more of a   pullback as more headlines come out over the  next few days and weeks? Um yes to both. Uh I   do think it's a good entry point. I think it's  very very difficult to time the market whether   the market or an individual stock. Certainly  there's some technical indicators you can look   at things like supports and resistances. But  if if you're trying to base it on headlines   uh you know very often the market will do the  unexpected and so peace could be achieved and   and theoretically oil prices should fall on that  news. Doesn't always work that way. So it's very   very difficult to say well when there's a peace  deal oil prices are definitely going to come down   and this is the effect it's going to have on these  stocks. I think you you want to look at them uh   especially these kinds of stops for the long term  because of as we discussed how in demand energy is   going to be even forgetting AI for a second you've  got an increasingly wealthy global population more   and more people you know millions and millions  of people entering the middle class all over   the world so you would need more energy for that  now you layer in AI on top of that and the demand   for energy long term is going to be very very  strong. So I I think it's a good time to enter   now. You could always you know position size put  in you know half a position or a quarter position   scale in at some point but I don't think you want  to miss this opportunity in case uh you know this   this uptrend continues and lifts off from here  because again this stock is in an uptrend. It has   not it has not broken. If if the stock had rolled  over, I would say, yeah, maybe let's wait a little   bit and and see uh if we can get in cheaper,  but right now that's not the case at all. Yeah,   Hallebertton, a great company to look at. Again,  more of the picks and shovels side of the oil and   energy story. Let's move on to the second stock in  your list, and this is a different side of oil for   sure. Uh yeah, so uh Chevron. So, they are the  kind of company that would employ Hallebertton.   So, one of the major oil producers out there.  really nice yield, 3.9% dividend yield. They've   been raising it forever. I really like the fact  that they have exposure to Venezuela. Uh they, you   know, somewhat of an untapped market. Uh and and  they're pretty much first in line in Venezuela.   They've had operations there, uh for a while.  Right now, you know, Chevron is is clearly one of   the giants. They produce about 4 million barrels  of oil per day. Uh which is between like four and   5% of the world's production every single day.  That's a a major major number. Uh so, you know,   they're a very very big player. Obviously, they uh  complete an acquisition of Hess in 2025. You know,   there's there's a lot of things to like there,  but what I really really like here is that it   gives them one of the highest margin oil fields  in the world off the coast of Guyana. So it's it's   the one of the lowest cost and highest uh highest  yielding uh oil fields. So that's going to boost   their margins, their earnings, their cash flow.  Uh they recently signed a deal to supply uh gas   to Microsoft data centers in Texas. So not only  are they just a giant, you know, oil producer,   uh they're also in that getting into the AI game  as well with, you know, one of the the biggest   players that are out there. um less than 5% of its  production is in the Middle East. So really love   the fact that they are not reliant on that part of  the world either. And pretty reasonable valuation   trading at 13 times forward earnings and seven  times forward free cash flow. Generally speaking,   I I like companies that are trading at 10 times  or less cash flow, free cash flow. Uh and they're   trading at seven times free cash flow. So  it's a pretty good valuation at this point.   Yeah, I think one of the biggest growth factors  you mentioned there that is so interesting is   that they're having a direct partnership with  Microsoft, one of the major hyperscalers out   there. So there's many investors who are not  counting in oil and gas energy companies as   a part of filling that you know huge electricity  demand that we're having and the huge power demand   that we're having. But it does have to come from  somewhere and I do think that a lot of companies   are getting creative with using the traditional  energy methods we have, oil being one of them.   uh to fulfill the needs that these data centers  are having. So I think that could potentially be a   good growth driver for not only Chevron but other  other companies in this field as well. I want to   talk about timeline. So a lot of investors who  are interested in tech are seeing these tremendous   overnight returns right up 200% in a month  from massive growth stories in the tech sector.   I don't think you're going to get that kind of  overnight success with Chevron, but what kind of   long-term growth horizon do you see and a timeline  for growth and uh growing your portfolio, not only   from the stock, but also from the dividend yield  on a company that's solid like Chevron? Yeah. So,   I don't have a specific price target or return.  I do expect it to outperform the market. This is,   you know, one of those you put in the portfolio  and five years from now, 10 years from now, you   look back and it's one of those stocks that have  really compounded and and helped move the needle   in your portfolio. So, you know, this is not, like  you said, a tech stock that's going to explode   higher. Uh, it's it's it's a it's a nice solid  steady as she goes long-term growth story. And as   retail investors, I think that you it's exciting  to pay attention to those explosive growth tech   stories or the space stories that are seeing  that explosive growth right now. But I think   this video is so important right now in the timing  because you also have to have some diversification   with some of these more solid companies that are  continuing to see that slow growth and success   over time that even with headlines like what's  happening with the conflict right now, um they   won't massively impact a stock like this. It's  still very solid. has the solid books like you   talked about. So I think it's great to remember  names like this one. Yeah. And this is I you know   this would also I would consider this a defensive  name as well. So right now market is is on fire.   Everything looks wonderful. It's not going to stay  that way forever. As we know markets, you know,   bare markets are just a part of the regular cycles  of of bulls and bare markets. Eventually that's   going to occur. We're going to have a downturn  at some point. And having a a quality defensive   dividend growth company like Chevron in the  portfolio can really help, you know, steady the   portfolio if some of your more speculative names,  some of the the higher momentum and growth names   start to take a hit. Having a stock like Chevron,  you makes it a little bit easier to weather the   storm. Yeah, I think that's such great advice for  investors to keep in mind. And I like that we're   talking about it now when a lot of the market  is booming. So often we do videos like this or   people want to hear videos like this when there's  we're in the middle of a crash, but I think now   is a time to be talking about those names, just  preparing for the inevitable because you're right,   the market cannot go up and to the right forever.  We can't see explosive growth forever. There will   naturally be some pullbacks and corrections at  some point. So a great name to talk about. Now,   if you are interested in more names like this,  those solid dividend companies that can help,   you know, support your portfolio through whatever  the market brings over the next few months, make   sure to check out Mark's free report with the top  12 dividend stocks that he is watching right now   that are exactly that, the kinds of stocks that  can help support your portfolio and protect your   investments for the long term, not just during  short-term growth moments and momentum moments   in the market. Scan the QR code or click the link  in the description to get that free report. Again,   a special offer just for our market beat viewers  today. All right, Mark, let's get to this last   energy stock that you are looking at. And this is  not quite as popular of a name as Chevron. Anyway,   yeah, and this is kind of the the opposite  of Chevron. This is a bit more speculative,   has more momentum on its side, and that's  Hannon Armstrong Sustainable Infrastructure,   uh, ticker symbol HSI. And this is a company  that lends money to, uh, renewables projects. So,   solar and wind. And what I find fascinating  about this stock and and the sector, you know,   quite frankly, is, you know, it's no secret  that President Trump has been coming after the   renewables sector. He's he and the administration  are doing, you know, whatever is possible to shut   down solar and wind projects. And yet, the sector  has been on fire this year. it is is completely   shrugged off any kind of of policy that has been  aiming to to slow it down. Uh and and to me it it   it makes all the sense in the world because  regardless of let's say short-term policy,   we need all the energy that we can get and as as  we just you know talked about with AI coming on   coming on board and and increasing um we need so  much more power and yes oil needs to be a big part   of that and that's why we're increasing drilling  but to not think that solar and wind are going to   be a part of that. We need all the energy we can  get. We need nuclear, we need oil, we need gas,   we need solar and wind. Whatever we can bring  online to feed this beast is important. So I think   the market clearly understands that regardless  of, you know, whatever is coming out of Washington   and these companies are doing quite well and  they're and they're so a company like Hannah and   Armstrong. So again, they're the the financiers of  these projects. So they're not building the solar,   they're not collecting the revenue from solar,  they're simply collecting the interest from   the companies that are building it. And their  their uh portfolio is is absolutely fantastic.   They generate or they they pay out about a 4%  yield. This is a $6 billion market cap company,   so not real big, 4% yield. Um the stock has nearly  doubled in a year, so it it does have momentum. Uh   it's trading at less than 12 times its 2028  guidance. So really really cheap valuation   despite the the big move in the stock. Uh they  raise money right now in the mid single digits   meaning you know they're paying let's say five  to 7% uh to borrow money and then lending it out   at about 10% roughly. Uh as interest rates go  up that you know that will move a little bit as   well on both sides. They may actually see their  cost of borrowing go down because they just got   some upgrades uh for their uh credit rating. So  they're now they are tripleB minus credit rating   which is investment grade. So you know they're  a very very uh safe company if if you were going   to buy the bonds. I'm I'm recommending the stock  but if you're going to buy the bonds that credit   agencies are telling you this is a very very  safe company from a credit perspective. Earnings   projected to grow double digits through 2028.  They very diversified portfolio. They have 1,300   uh different investments with 150 clients. Some of  those are very long-term contracts. A few of them   are 30 years. So, you know, they can really count  on this cash flow to come in and and be able to,   you know, pay the dividend. Uh hopefully raise  it going forward. And let's face it, if 2028,   you know, winds change in Washington, then that  will be a huge tailwind for uh for this sector.   uh and you know granted that's two years away but  that that is a potential catalyst for the sector   and the stock. Yeah. That there's always changes  in Washington that could impact the energy sector   because of policies. That is for sure. But I think  what you said is so true that uh no matter what   policy is happening in Washington and which sector  of energy they're supporting more than the other.   There's so much demand for energy right now that  all of them are winning. And there is room for   all of these sectors of the energy market to do  well right now because the demand is so extreme.   I think looking at these solar and wind projects  as a potential growth, clearly they're making   money or they wouldn't be building more of them  right now. Um, is there a lot of competition out   there or does this company really have a niche in  the market for funding these kinds of large-scale   uh renewable energy projects? Uh, there is  competition, but they are certainly one of the   most well-known of them. uh they focus on projects  in the United States and so uh you know being a   publicly traded company also uh and and they have  access to capital um perhaps a little bit easier   than than some private companies. So I would say  they're are I don't know if they're the 800 pound   gorilla but they're they're a large gorilla in  the space for sure. Yeah. I also want to look   at their earnings report really quick because  it was fairly recent just towards the start of   May. It looks like they have some really strong  numbers coming in too. I know you touched on a few   of those details already, but I think it's enough  to highlight too that there clearly the money is   coming in for this company. Yeah, absolutely. They  they are generating uh great numbers. Like I said,   they're they're paying this this nice dividend  yield. That dividend yield should grow over time.   And the fact that they have this very high credit  rating means that their access to capital should   be, you know, less expensive than many of their  competitors. So, I I really like that that fact.   that their their cost of capital is likely much  lower than competitors. And I think that's a story   that not a lot of people are talking about. Yeah,  for sure. This is a another unique name to look   at in the energy sector. Less tied to the oil  price story that's currently in the headlines,   too. Like you said, it's kind of a a quiet area of  energy to be looking at right now. Mark, another   great list as always. Thank you so much for coming  on the show to share some of these. If you want   to go back and watch that full energy video we  talked about in March for some more details on   the three names we talked about early on in this  video, you can watch that full interview Here.