Should these energy stocks be on your watchlist?

Summary

• The S&P 500 index rose by 12.80 basis points and the Dow Jones Industrial Average Index also increased by 27 basis points on July 25, 2023.
• Alliance Resource Partners reported total revenue of US$578.78 million for the March 2023 quarter, as against US$388.36 million in the March 2022 quarter.
• NexTier Oilfield Solutions Inc. generated a net income of US$150.1 million in Q2 2023, as against US$254 million in the previous quarter.

The S&P 500 closed the session higher on Tuesday, rising by 12.80 basis points during the day. The Dow Jones Industrial Average Index also rose by around 27 basis points on Tuesday, July 25, 2023.

The market rose as investors and market experts anticipated another rate hike from the central bank. Market analysts expect another rate hike of 25 basis points in July, which is expected to be announced on July 26, 2023.

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The S&P 500 energy index saw an increase of 3.7 basis points on July 25, 2023. With that, investors can examine the following energy sector stocks during this earnings season:

Alliance Resource Partners (NASDAQ: ARLP)

The coal mining company generates most of its revenue from the Illinois Basin. It has a market cap of US$2.4 billion.

Alliance reported total revenue of US$578.78 million for the March 2023 quarter, as against US$388.36 million in the March 2022 quarter. The company’s gross profit was US$662.91 million in Q1 2023, compared to US$172.03 million in Q1 2022.

Image source: ©2023 Kalkine®; Data source: Company Reports

The company has a P/E ratio of 3.46x based on its closing price of US$19.14 on Tuesday, July 25, 2023. As per ARLP’s closing price on Tuesday, the stock rose 5.91% over the previous month.

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NexTier Oilfield Solutions Inc. (NYSE: NEX)

NexTier is a well production services provider for active and demanding basins. It also provides cementing and coiled tubing services. NexTier has a market cap of US$2.6 billion.

The company generated a total revenue of US$945.1 million for Q2 2023. Meanwhile, its net income was US$150.1 million in Q2 2023, as against US$254 million in the previous quarter. NexTier’s adjusted EBITDA for Q2 2023 was US$233.9 million, as against US$227.6 million in the prior quarter.

Image source: ©2023 Kalkine®; Data source: Company Reports

The stock has a P/E ratio of 4.94x based on Tuesday’s closing price of US$11.51. NEX’s YTD gains for the one month ending July 25, 2023, was 35% and YTD gain up to the same date was US$27.18%.