3 Energy Stocks Making New Highs On Friday
Looking for top penny stocks to buy? Energy stocks might be some to pay attention to right now. It’s no secret that oil and gas stocks have felt continued pressure over the last few months. While this can pose a high-risk scenario, we’ve seen a surge of interest building on Friday in several energy names.
Amid lower demand, higher supply and, at times, nowhere to store oil, the economics haven’t supported a bullish stance on the commodity. However, a bit of breathing room could be in play right now. Big oil surprised to the upside resulting in a strong bounce in crude oil prices on Friday.
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Despite this being the case, crude prices still stumbled on Friday with Light Sweet Crude Futures dropping just under 2%. The international benchmark Brent also dropped on growing concerns of a new surge in COVID-19 cases. What we’ve noticed, however, is several energy stocks making volatile moves on Friday.
Energy Penny Stocks To Watch:
- Abraxas Petroleum (AXAS Stock Report)
- Marine Petroleum Trust (MARPS Stock Report)
- Superior Drilling Products Inc. (SDPI Stock Report)
It’s important to note that these stocks have been very volatile today and so has the industry. If you’re looking for penny stocks to buy in energy, keep this in mind. This might be more of a short-term move than anything else. This is especially in light of other large-cap energy stocks feeling selling pressure on Friday.
Energy Penny Stocks To Buy [or avoid] #1: Abraxas Petroleum
Abraxas Petroleum saw a strong surge of trading volume on Friday. AXAS stock jumped to early highs of $1.81 with a bullish move coming 1 day after reaching new 52-week lows of $1.41 on Thursday. Due to the COVID pandemic, many companies in this industry have scrambled to find ways to stay afloat. In August, Abraxas announced that its Board renewed its strategic alternatives review.
“Our strong, concentrated asset bases in the Delaware and Williston Basins, as well as our excellent hedge book, position Abraxas for success on a standalone basis and also make us an attractive transaction partner.” Petrie’s Jon Hughes and Richard Moss will lead the engagement.”
Bob Watson, Abraxas CEO
The San Antonio based crude oil and nat gas company has found some renewed interest on Friday. Will it be one of the penny stocks to buy or sell before the end of the day?
Energy Penny Stocks To Buy [or avoid] #2: Marine Petroleum Trust
Marine Petroleum Trust is another one of the energy stocks to take note of on Friday. MARPS stock traded as high as $5.85 during early morning trade. We also saw considerable levels of volume coming into the market. In fact, Friday marked the highest trading volume day of the year for Marine. Similar to other names on the list, the company didn’t have any news to go along with the move. However, sympathy momentum has given a boost to the penny stock.
A few weeks ago, MARPS saw a similar surge in momentum, which took it to highs of $8.70, then about two weeks before that, shares skyrocketed again. Due to the volatility of this stock, it might be prudent to pay close attention to key levels and, of course, the volume profile. With high volume penny stocks, the moment that volume begins sliding, it could make for, well, interesting trading. So keep that in mind if MARPS stock is on your list.
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Something interesting to note, if you’re looking for penny stocks with dividends, Marine declared a quarterly dividend in August. While it was much lower than it’s previous quarterly distribution, the penny stock has a dividend, all the same. That’s something unique when you’re talking about thinly traded stocks under $5.
Energy Penny Stocks To Buy [or avoid] #3: Superior Drilling Products Inc.
Superior Drilling Products Inc. caught an early surge in trading during premarket hours on Friday. While the price has pulled back a bit, trading momentum continues to be a driving force for SDPI stock. Unlike the other companies mentioned above, Superior actually had a fundamental catalyst to point at. The company provided preliminary revenue for its third quarter.
Superior expects revenues to come in around $1.5 million, the majority of which should come from North American operations. This revenue figure was up 50% from its prior year’s Q3 and up nearly 30% from the trailing first quarter. What’s more, is the company’s 9-month revenue is expected to come in at $8.9 million. This isn’t to say that the company doesn’t see headwinds due to coronavirus. However, it has managed to weather the recent market and industry volatility.
Troy Meier, Chairman and CEO, said, “We believe that our year-over-year and sequential growth in international revenue clearly validates the traction our Drill-N-Ream® well bore conditioning tool is gaining in the Middle East and beyond…Throughout this slowdown, we continue to deploy the DNR in more countries. The tool has now been deployed in successful wells in the Ukraine and in Oman. As we have previously noted, we expect the September quarter to be the trough and are encouraged with the improvement in drill rig activity in North America and around the world over the last few months.”
Are Energy Penny Stocks Worth It Right Now?
I wanted to recap a bit here because a lot of speculation has been driving certain trends. We saw this with foreign penny stocks a few weeks back. Friday, we’ve seen an early surge in energy stocks. Whenever there’s a lack of company-specific information, and we can see that sympathy trading is in full effect, as traders, it’s important to keep your risk/reward in mind.
The last thing you want, especially in high volatility situations, is to either miss a quick opportunity or get caught holding the bag. In these cases, the energy stocks above are highly volatile. So if they’re on your list right now keep this in mind. Sometimes a good trade in the one you don’t take. However, if you’re more inclined to higher risk, these are some top energy stocks turning heads on Friday.
