TipRanks Labs

Oil and Gas vs. Green Energy Companies: Has the Outlook Changed Over Time?

Story Highlights

2022 has been a remarkable year for the Oil and Gas companies, albeit at the expense of creating unfavorable macroeconomic headwinds. Green Energy companies are the solution to the massive carbon footprint created by traditional energy companies but still remain in the underappreciated territory.  

In August, a study of TipRanks data showed that the Oil and Gas sector was preferred over the Green Energy sector according to several measures, including Corporate Insider Sentiment, Analyst Views, Earnings Beat, and Price Target Upgrades.

We thought it was important to examine the current performance of the top five companies from both sectors to see if the scales are still tilted toward the Oil and Gas sector or if the Green Energy sector has shown significant progress.

Below is a list of the top five companies from both sectors and a gist of their performance through the lens of TipRanks’ parameters.

Top 5 Oil and Gas Companies

Top 5 Green Energy Companies

Despite Stock Price Appreciation, Insider Sentiment on Oil and Gas is Negative

As seen from the tables above, all Oil and Gas company stocks have gained massively in the year-to-date period, but have negative insider sentiment. Having said that, insiders of the five Green Energy companies also sold more shares than they bought during the period. Now, let’s get into the details of other parameters and see which sector seems to be a current favorite.

90% of Analysts Maintain Ratings on All Companies

A majority of analysts have maintained their recommendations (Buy/Hold/Sell) on these stocks since the start of the year. Interestingly, an average of 91.7% of the analysts have maintained their calls on the five Oil and Gas companies, vis-à-vis 90% who have maintained their views on the five Green Energy companies.

Oil and Gas Companies Continue to Post Higher Earnings Beats

Surprisingly, companies in the Oil and Gas sector still continue to outpace analysts’ earnings expectations on the heels of solid demand and elevated energy prices. The five Oil and Gas companies have exceeded earnings forecasts on average 73.75% of the time during the past four years.

Meanwhile, the five companies in the Green Energy sector are split between their earnings beats and earnings misses with an almost 50%-50% stance.

Oil and Gas Companies Have Earned More Price Target Increases

Wall Street analysts continue to be optimistic about companies in the Oil and Gas sector and keep increasing their price targets for the stocks. Since the beginning of the year, an average of 83% of analysts have improved their price targets for the five companies mentioned above.

On the contrary, for the five Green Energy companies, an average of 44.7% of analysts improved their price targets, while 35% of analysts decreased their price targets, during the same period.

Key Takeaways

Keeping in mind the above parameters, it is clearly visible that the Oil and Gas companies continue to command their advantage over the Green Energy companies. With winter setting in, the sector seems to benefit from the persistently high demand for oil and gas supplies.

Also, the average analyst’s price targets for each oil and gas company show reasonable upside potential over and above the massive stock price gains already registered during the year. This implies that analysts remain highly bullish about the Oil and Gas companies’ stock trajectory.  

Disclosure

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