On Jun 10, 2016, Zacks Investment Research upgraded PetroChina Co. Ltd. (NYSE:PTR) to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies holding a Zacks Rank #1 have strong chances of outperforming the broader market over the next few quarters.
Why the Upgrade?
Incorporated in 1999, PetroChina is headquartered in Beijing. The company is one of the leading integrated oil companies in the People’s Republic of China and is involved in the production and distribution of oil and gas.
The company boasts a strong balance sheet and robust portfolio of assets. This makes it better suited to handle volatile market conditions than most of its peers.
The growth prospects of the company are particularly attractive in the downstream sectors. Strong growth in China’s middle class and in automobile ownership is expected to fuel consumption of refined petroleum products. Also, the company’s natural gas business offers lucrative growth prospects in the coming years as China moves from coal to natural gas.
Moreover, PetroChina’s strategic initiatives will provide it with global resource and an expanded market base, thereby making it a leading international energy player. The company’s investment in a joint venture with Canada's Encana Corp. (ECA) in Alberta to develop natural gas/condensates assets and the purchase of BHP Billiton (LON:BLT) Ltd.'s (NYSE:BHP) interests in the proposed Western Australian Browse liquefied natural gas (LNG) project. Additionally, these ventures will hedge the company against uncertain Chinese product pricing policies.
PETROCHINA ADR Price and Consensus
Other Stocks to Consider
Other favorably placed stocks from the broader energy sector are Braskem S.A. (NYSE:BAK) , and Sasol Ltd. (NYSE:SSL) . Both these stocks sport a Zacks Rank #1 (Strong Buy).
BHP BILLITN LTD (BHP): Free Stock Analysis Report
PETROCHINA ADR (PTR): Free Stock Analysis Report
SASOL LTD -ADR (SSL): Free Stock Analysis Report
BRASKEM SA (BAK): Free Stock Analysis Report
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Zacks Investment Research