Cheap shares of energy companies with growth potential
The energy sector presents several attractive investment opportunities, both in renewables and traditional fossil fuels.
AES Corporation $AES-9.4%
- Forward P/E: 6,6
- Expected earnings growth: 56 %
- Key opportunities:
- Strong potential in the area Renewable energy.
- Growing demand for energy in data centres due to the boom in generative AI.
- The company is focusing on efficient power generation, which can deliver significant cost savings.
- Analyst Outlook: Morgan Stanley identifies $AES-9.4% as a company with significant growth potential, particularly through innovation in technology and sustainability.
Devon Energy $DVN-11.6%
- Segment: Oil & Gas
- Benefits:
- Stable $DVN-11.6%earnings supported by rising oil and gas prices.
- Diversified portfolio of upstream activities to ensure resilience to market fluctuations.
- Growth potential:
- Fossil fuel extraction remains key despite the transition to green energy, giving the company room to grow in the short and medium term.
Devon Energy
DVNSLB $SLB-11.3%
- Segment: Oilfield Services
- Key growth drivers:
- The mining industry is recovering globally, fueling the demand for oilfield technology services and solutions.
- $SLB has a global presence and strong technological know-how.
- Positive Outlook: $SLB-11.3% benefits from growing demand for mining services, allowing it to maintain high margins during market volatility.
Conclusion
These companies offer a combination of low valuation and high growth potential. AES will appeal to investors focused on renewables, while Devon Energy a SLB are attractive to those who believe in the continued importance of fossil fuels. Rising energy prices and technological innovation can support their long-term profitability.
I've heard of $DVN-11.6%, but I don't want to invest in it.
Interesting companies and they are quite undervalued. I'm probably most intrigued by $AES-9.4%. The price is low, the stock is undervalued and the future outlook looks very good.