2 Highly Ranked Stocks to Buy After Earnings: AROC, MNDY

Exxon Mobil Corporation XOM, the U.S.-based oil and gas giant, has entered into an agreement to sell its older assets located in the Permian Basin of Texas and New Mexico. The company has not disclosed the buyer of the assets or the deal’s valuation. However, according to sources, the assets have been sold to a privately held energy company, Hilcorp Energy, for approximately $1 billion.

XOM Sells Permian Basin Assets to Hilcorp Energy

Per Reuters, ExxonMobil had previously auctioned these assets to shift its focus on shale drilling properties which offer higher growth and better returns. Hilcorp Energy emerged as the winner of the auction, buying these assets for approximately $1 billion. ExxonMobil stated that the transaction will likely be closed in the March quarter of 2025.

XOM's divestment involves conventional oil drilling assets in the Permian Basin. The company mentioned that these assets include conventional vertical wells, not horizontal ones. Vertical wells are typically less advanced than horizontal wells used in shale production.

XOM Maintains Focus on High-Growth Shale Properties

The company stated that the divestment aligns with its strategy to focus on investments that improve its portfolio by adding advantaged assets. ExxonMobil also mentioned that it has been continuously optimizing its portfolio to focus on its most profitable assets. The company follows a strategy of divesting its non-core assets and using the proceeds to strengthen its balance sheet.

Hilcorp Energy Expands Portfolio

The company specializes in buying older, mature assets from rival companies in the industry and is one of the most active buyers of such assets. Previously, the private firm acquired Eni’s assets offshore Alaska in a deal worth $1 billion. The U.S. oil and gas sector has recently witnessed a consolidation trend within the industry. Taking advantage of the favorable commodity price environment, many oil and gas majors have pursued large mergers, such as the $60 billion acquisition of Pioneer Natural Resources by ExxonMobil and the pending $53 billion all-stock merger between Hess and Chevron Corporation.

XOM’s Zacks Rank and Key Picks

Currently, XOM carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Archrock Inc. AROC, Smart Sand, Inc. SND and FuelCell Energy FCEL. Archrock presently sports a Zacks Rank #1 (Strong Buy), while Smart Sand and FuelCell Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained demand in the oil and gas market, SND is expected to see growing demand for its services, reflecting a positive outlook.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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BP plc’s BP current efforts to scale back on its renewable projects' expansion shall not affect the offshore wind projects that the British energy major has undertaken with the German energy company EnBW, as per Reuters. In recent months, BP has been maintaining its focus on its high-margin business while scaling down the aggressive expansion of its renewables unit. The company had previously announced that it plans to sell off its U.S. onshore wind business and divest a small stake in its offshore wind business.

Overview of the Partnership

However, per EnBW, these decisions are not likely to affect BP’s partnership with the German energy firm. BP and EnBW forged a 50-50 partnership in 2021 to develop offshore wind projects in the UK. The companies have signed lease agreements for two 60-year leases that should enable them to develop offshore wind projects in the Irish Sea. Furthermore, they have signed an option agreement related to a lease in the UK North Sea.

The three projects, named Morven, Morgan and Mona, have the collective capacity to generate up to 5.9 gigawatts (GW) of power, enough to meet the needs of approximately 6 million households in the UK.

BP’s Scale-Back Unlikely to Affect JV’s Operations

EnBW mentioned that BP’s strategy to scale down its renewables business is global. The decision does not affect the JV’s plans. EnBW further mentioned that the JV is advancing with its projects, and the operations remain unaffected by BP’s decision to cut back on further investments in renewables.

BP’s Zacks Rank and Key Picks

Currently, BP carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Archrock Inc. AROC, Smart Sand, Inc. SND and FuelCell Energy FCEL. Archrock presently sports a Zacks Rank #1 (Strong Buy) each, while Smart Sand and FuelCell Energy carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Smart Sand, Inc. is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained demand in the oil and gas market, SND is expected to see growing demand for its services, reflecting a positive outlook.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

• Needham boosted the price target for monday.com Ltd. from $300 to $350. Needham analyst Scott Berg maintained a Buy rating. monday.com shares closed at $275.21 on Monday. See how other analysts view this stock.
• Ascendiant Capital raised the price target for Myomo, Inc. from $8.5 to $9. Ascendiant Capital analyst Edward Woo maintained a Buy rating. Myomo shares closed at $4.90 on Monday. See how other analysts view this stock.
• HC Wainwright & Co cut Phunware, Inc. price target from $9 to $6. HC Wainwright & Co. analyst Scott Buck downgraded the stock from Buy to Neutral. Phunware shares settled at $5.99 on Monday. See how other analysts view this stock.
• B of A Securities raised iHeartMedia, Inc. price target from $1 to $3. B of A Securities analyst Jessica Reif Cohen upgraded the stock from Underperform to Neutral. iHeartMedia shares closed at $2.49 on Monday. See how other analysts view this stock.
• Deutsche Bank boosted SentinelOne, Inc. price target from $25 to $32. Deutsche Bank analyst Brad Zelnick upgraded the stock from Hold to Buy. SentinelOne shares closed at $27.18 on Monday. See how other analysts view this stock.
• Needham boosted Autolus Therapeutics plc price target from $9 to $10. Needham analyst Gil Blum maintained a Buy rating. Autolus Therapeutics shares closed at $3.51 on Monday. See how other analysts view this stock.
• Keefe, Bruyette & Woods increased the price target for Horace Mann Educators Corporation from $39 to $44. Keefe, Bruyette & Woods analyst Meyer Shields downgraded the stock from Outperform to Market Perform. Horace Mann Educators shares settled at $42.31 on Monday. See how other analysts view this stock.
• Morgan Stanley slashed International Flavors & Fragrances Inc. price target from $111 to $110. Morgan Stanley analyst Lisa De Neve upgraded the stock from Equal-Weight to Overweight. International Flavors shares closed at $91.21 on Monday. See how other analysts view this stock.
• Mizuho raised the price target for NVIDIA Corporation from $140 to $165. Mizuho analyst Vijay Rakesh maintained an Outperform rating. NVIDIA shares closed at $145.26 on Monday. See how other analysts view this stock.
• Citigroup increased Saia, Inc. price target from $534 to $651. Citigroup analyst Ariel Rosa maintained a Buy rating. Saia shares closed at $558.10 on Monday. See how other analysts view this stock.

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Monday.com Ltd reported better-than-expected earnings for its third quarter on Monday.

The company reported fiscal third-quarter 2024 revenue growth of 33% Y/Y to $251.0 million, beating the analyst consensus estimate of $246.1 million. The project management software company's adjusted EPS of 85 cents beat the analyst consensus estimate of 63 cents.

“monday.com had a strong Q3, driven by the team’s consistent execution as we focus on deepening our product capabilities and bolstering the platform to support customers of all sizes,” said monday.com co-founders and co-CEOs, Roy Mann and Eran Zinman. “Reaching $1 billion in ARR marks a major milestone in our journey as a company, and we are more excited than ever to enter this next stage of growth, building on the strong foundation we’ve established.”

Monday.com raised 2024 revenue guidance to $964 million–$966 million (prior $956 million–$961 million) against the consensus of $960.2 million and an adjusted operating margin of 12%–13% (prior 10%-11%)

Monday.com shares fell 3% to trade at $266.95 on Tuesday.

These analysts made changes to their price targets on Monday.com following earnings announcement.

• Needham analyst Scott Berg maintained Monday.Com with a Buy and raised the price target from $300 to $350.
• Baird analyst Rob Oliver maintained the stock with a Neutral and raised the price target from $265 to $270.
• Canaccord Genuity analyst David Hynes maintained Monday.Com with a Buy and raised the price target from $295 to $310..

Considering buying MNDY stock? Here’s what analysts think:

Eni S.p.A E, a global integrated energy company, is set to receive a new chunk of investment for its renewable energy business, Plenitude. The Swiss asset management firm Energy Infrastructure Partners (“EIP”) will increase its stake in Plenitude from 7.6% to 10%. The deal values Eni’s renewable energy and retail business unit, Plenitude,at more than 10 billion euros, including debt.

Eni has stated that EIP will purchase new shares issued by the company for approximately 209 million euros. E has adopted a new “satellite” strategy, wherein it will set up separate business units that are capable of drawing investor attention. The new investments will be utilized to grow the businesses further. The deal with EIP aligns with Eni’s satellite strategy.

E believes that this strategy is an ideal path toward energy transition. Eni plans to build low and zero-carbon businesses that can capture the attention of leading investors and grow organically to become sustainable on their own. Eni has also implemented this strategy on a previous deal involving KKR, a U.S.-based investment firm, that purchased a 25% stake in Enilive, its biofuel business unit. Furthermore, Eni is reportedly talking to several potential investors and seeking partners for its carbon capture and storage business.

EIP mentioned that increasing its stake in Plenitude underscores its confidence in the business.

E’s Zacks Rank and Key Picks

Currently, E carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Archrock Inc. AROC, Smart Sand, Inc. SND and FuelCell Energy FCEL. Archrock and Smart Sand presently sport a Zacks Rank #1 (Strong Buy) each, while FuelCell Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Smart Sand, Inc. is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained demand in the oil and gas market, the company is expected to see growing demand for its services, supporting a positive outlook.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Zacks Investment Research