Despite an anticipated softening in demand, oil-producing companies are nonetheless expected to grow given the fast-paced COVID-19 vaccination programs and consequent economic rebound. Therefore, Wall Street analysts predict energy stocks Suncor (SU), Ovintiv (NYSE:OVV), PDC Energy (NASDAQ:PDCE), and Matador Resources (NYSE:MTDR) will rally more than 50% in price in the near term. Let’s discuss.Oil prices have been declining from their recent multi-year highs as rising COVID-19 cases threaten global oil demand. However, solid progress on the vaccination front and what seems like a resilient global economic recovery should prevent oil prices from falling significantly. Many analysts expect robust demand growth to continue through the end of the year, which should allow oil prices to remain stable in the coming months. Both the International Energy Agency (IEA) and OPEC expect the world’s thirst for oil to return to pre-pandemic highs in the second half of next year.
As the U.S. economic recovery continues with the recent approval by the Senate of a large infrastructure spending bill, provisions for the development of the energy sector should facilitate the industry’s long-term growth despite short-term headwinds.
Given this backdrop, Wall Street analysts predict energy stocks Suncor Energy Inc. (NYSE:SU), Ovintiv Inc. (OVV), PDC Energy, Inc. (PDCE), and Matador Resources Company (MTDR) will rally by more than 50% in the coming months.