Three energy dividend stocks - Cheniere Energy, Vistra Corp, Weatherford International - rated as strong buys after rate cut.

From Nasdaq.: 2024-09-24 11:21:48

The Federal Reserve cuts interest rates by 50 basis points, aiming to boost the labor market and support various sectors like energy. Energy stocks have seen a mix of gains and losses this year, with companies like Cheniere Energy, Vistra Corp, and Weatherford International standing out as strong buys following the rate cut.

Cheniere Energy (LNG) is the largest U.S. LNG producer, with a stock price up 6.8% YTD and a forward P/E ratio of 18.77. The company offers a dividend yield of 0.96%, with strong Q2 earnings beating estimates, and forecasted growth in capacity and earnings. Analysts recommend the stock as a “Strong Buy” with a target price of $202.33.

Vistra Corp (VST) has surged in 2024, up 189.8% YTD, and plans for strategic acquisitions in the zero-carbon energy generation space. With a dividend yield of 0.81%, the company aims for 33% annual EPS growth and a “Strong Buy” rating from analysts with a target price of $115.00.

Weatherford International (WFRD) specializes in oilfield services and saw revenue growth in Q2 2024 despite missing earnings estimates. The company initiated a quarterly dividend, and the acquisition of Datagration Solutions Inc positions them for future growth and efficiencies. Analysts predict 20% EPS growth this year, with a unanimous “Strong Buy” rating and a target price of $153.12.



Read more at Nasdaq.: 3 ‘Strong Buy’ Energy Dividend Stocks to Grab After the Fed’s Jumbo Rate Cut