These 2 Oil and Gas Stocks Are Running on Fumes. Here’s What to Look at Instead

Some stocks are better than others. And some industries are better than others, depending on the circumstances and time. 

After looking at our Zen Ratings system, it’s fair to say it may not be the best time for the oil & gas industry. Overall, it has an Industry Rating of F, and 20 out of 22 of the oil & gas stocks we cover have a Zen Rating of C (Hold) or lower. 

In short, by our metrics, there are better options. With that in mind, let’s take a look at a few poorly-rated oil & gas industry stocks and see if there are better options.

1. STRONG SELL: Phillips 66 (NYSE: PSX)

PSX is having a bad year, and is down about 40% over the last 12 months. While there have been some gains in recent days, it lags behind the market. In addition to an overall Zen Rating of F, its component scores of F in Growth and Momentum do not inspire confidence.

Consider Instead: Ranger Energy Services (NYSE: RNGR)

While oil and gas refining & marketing stocks could be better, that doesn’t mean the companies that provide services to those companies are doing poorly. While the stock has experienced a downturn in recent months, it has a Component Grade of B in Growth and Financials, and an A Component Grade in Sentiment. This could be a time to buy the dip as it shows signs of strength and has a Zen Rating of A.

STRONG SELL: HF Sinclair Corp (NYSE: DINO)

It’s been a bad year for DINO, given a 53.5 percent drop in share price over the last year and it isn’t going to look any better immediately. The EPS has been poor in recent reports, and we do not see any news that would allow DINO to turn its fortunes around.

And with an F Component Grade in Momentum, as well as F Component Grades of D in Growth and Sentiment, it will take time for DINO to get back on its feet.

Therefore, it might be a good idea to consider selling DINO, before your portfolio goes extinct.

Consider Instead: Star Group LP (NYSE: SGU)

Out of the 22 oil and gas industry stocks we cover, there is only one A-Ranked stock: Star Group LP. 

It is perhaps telling that Star Group also works in air conditioning services, equipment installations and maintenance, and a few other services, but if you want to stick with oil and gas, SGU may be a solid choice. 

Consider:

• It has not been so affected by recent shocks to the market, only down 3.36% in the last month.
• It has a diversified business model that is less likely to be affected by tariffs. Additionally, SGU provides services people can’t or are unwilling to go without.
• It has a B Component Grade in Value, Momentum, and Financials. There’s still growth to be found in the stock.

Looking for more recommendations or information? WallStreetZen has you covered. If you’re looking for full information on any of the stocks above and want to keep them on an unlimited watchlist, WallStreetZen Premium is what you are looking for. With it, you’ll have all the information you need to make the best decisions for your portfolio.

And if you’re looking for more direct guidance and recommendations, Zen Investor is exactly what you need. With it, you’ll get portfolio recommendations and guidance from our own Steve Reitmeister, who has more than four decades of investing experience under his belt and has seen his share of turbulent markets.

Finally, there are plenty of other stocks to sell. Steve Reitmesiter has more to say on those here.

What to Do Next?

• 200 Stocks to Sell Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

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