As the global economy revives, rebounding energy demand has pushed energy prices to multi-year-highs. Furthermore, because the EIA predicts households will spend more on energy this winter, energy prices are expected to remain high considering the supply shortage. Hence, we think low-priced energy stocks MOL Hungarian Oil and Gas (MGYOY), TransGlobe Energy (TGA), and Blueknight Energy (NASDAQ:BKEP) could be solid bets now. These stocks are rated ‘Strong Buy’ in our proprietary POWR Ratings system. Read on.The energy supply crunch has been driving oil prices to multi-year highs. Brent crude rallied to $85.08 per barrel, while the West Texas Intermediate (WTI) reached $82.96 per barrel earlier this week. Brent and WTI have been up around 20% since the beginning of September. Analysts expect energy prices to remain high amid rebounding industrial demand and with winter nearing.
The United States Energy Information Administration (EIA) predicts that households would spend more on energy this winter than last year, which should drive prices further. The industry’s uptrend is evident in the Energy Select Sector SPDR Fund’s (XLE (NYSE:XLE)) 17.6% gains over the past month versus the broader SPDR S&P 500 ETF Trust’s (SPY) 2.1% returns.
Given this backdrop, we think energy stocks MOL Hungarian Oil and Gas PLC (MGYOY), TransGlobe Energy Corporation (TGA), and Blueknight Energy Partners, L.P. (BKEP), which are currently trading below $5, could be solid bets now. Our POWR Ratings system has rated these stocks ‘Strong Buy.’