$148.65
arrow_drop_up0.46%Is HES a Buy or Sell based on AI Analysis?
Fundamental Analysis
Hess Corp (HES) appears to be a fundamentally strong company based on several key indicators. Firstly, the company has a market cap of $44.72B, demonstrating its size and stability in the energy sector. Additionally, the company has a price-to-earnings (PE) ratio of 32.43, indicating that investors are willing to pay a premium for the company's earnings. Hess Corp also has a return on equity (ROE) of 19.21%, which is a healthy sign of profitability and efficient use of shareholder funds. Furthermore, the company pays dividends, with an annual dividend per share of $1.75, showing a commitment to rewarding shareholders. Lastly, the company has a low debt-to-equity ratio of 1, suggesting a conservative approach to leverage and financial risk management. Moreover, Hess Corp's financial performance is reflected in its strong operating margin of 23.49%, indicating efficient cost management and profitability. The company's net margin is also solid at 12.91%, showing its ability to generate profits from its operations. Additionally, the company has a healthy current ratio of 1.05, indicating that it has sufficient current assets to cover its short-term liabilities. Hess Corp's earnings growth average over the past three years is impressive at 71.45%, suggesting strong growth potential for the company. Finally, the company's historical dividend yield average of 1.15% highlights its consistent track record of returning value to shareholders through dividends. Overall, Hess Corp's fundamental analysis reveals a financially sound and attractive investment opportunity in the energy sector.
Positive Development
Hess Corp's acquisition of Endeavor Energy Resources is expected to make the company a major player in the Permian Basin, a highly productive oil and gas field in the United States. The company has been recognized as a strong performer in the energy sector, outperforming its competitors in the market. Hess Corp is in a strategic position to benefit from the ongoing consolidation in the energy sector, as companies look to scale up in order to compete in the long-term. The company has been successful in maintaining a healthy financial position, with a low long-term debt to equity ratio and a high cash ratio.
Negative Development
The company's stock price has been fluctuating in recent weeks, indicating potential volatility in the market. Hess Corp's net debt to total capital ratio is relatively high, indicating a high level of debt compared to its total capital. The company's current ratio is only slightly above one, which could indicate a potential liquidity issue. The company's pre-tax margin is relatively low, at 0.2275, indicating that it may not be as profitable as other companies in the sector.
Technical Analysis
Hess Corp (HES) has a technical rating of NEUTRAL, indicating a balanced outlook for the stock. The company's price has experienced a slight decline, with the current price at $145.59 showing a delta of -$2.6 and a delta percentage of -1.75%. The seven days price change percentage is also negative at -2.19%, suggesting short-term downward pressure on the stock. However, the stock has shown positive trends in the three-month and five-year price change percentages, indicating potential long-term growth opportunities for investors. In terms of technical indicators, Hess Corp (HES) currently has 1 buy indicator and 7 hold indicators for the month. The buy indicator, ATR, may signal a potential bullish trend, while hold indicators such as RSI, MACD, and CCI provide a more cautious outlook. The stock's technical analysis suggests a mixed picture, with both positive and negative factors influencing its performance. Investors may want to closely monitor the stock's technical signals and overall market conditions to make informed decisions about their investment in Hess Corp.
Conclusion and recommendation
Based on the data provided, Hess Corp (HES) appears to be a solid investment opportunity in the energy sector. With a market cap of $44.72 billion and a strong financial position, Hess Corp has shown consistent revenue growth and profitability. The company's dividend yield of 1.18% and a peg ratio of 0.29 suggest a stable and potentially lucrative investment option for investors looking for dividends. Additionally, the company's return on assets and return on equity are at healthy levels, indicating efficient use of assets and strong performance in generating shareholder value. In conclusion, Hess Corp (HES) presents a compelling opportunity for investors seeking exposure to the energy sector. With a strong financial performance, favorable analyst recommendations, and a history of solid dividends, the company demonstrates resilience and potential for long-term growth. Furthermore, the market and industry scores also reflect positively on Hess Corp's outlook, making it a favorable choice for investors looking for stability and growth potential within the energy sector.