Hess Corporation (HES), a global integrated energy firm headquartered in New York, specializes in the exploration, production, development, transportation, and marketing of crude oil, natural gas liquids, and natural gas. With a market capitalization of $43.6 billion, the company plays a significant role in the energy sector.
Companies valued at $10 billion or more are generally considered "large-caps," and Hess Corporation fits this criterion perfectly, signifying its substantial size, stability, and influence in the energy sector. Hess Corporation stands out for its robust asset portfolio, efficient oil and gas extraction methods, and commitment to innovation with advanced technologies. Its focus on sustainability and reducing environmental impact strengthens its market position. Additionally, Hess’s global presence and diversified energy portfolio contribute to its long-term growth and resilience in a dynamic industry.
HES shares are trading 13.1% below their 52-week high of $163.98, which they hit on March 29. HES has seen a 10.5% gain over the last three months, outperforming the US Oil & Gas Exploration & Production Ishares ETF’s (IEO) 4.5% rise over the same time frame.
In the long term, HES is down 1.2% on a YTD basis, but the shares have gained 5.9% over the past 52 weeks. In comparison, the ETF is up 1.1% in 2024 and 4.1% over the past year.
HES has been trading above its 50-day moving average since early October but encountered some fluctuations in the recent trading sessions. The stock has traded below its 200-day moving average since early December.
On Dec. 6, Hess shares dropped by more than 1%, alongside other energy stocks, as WTI crude declined over 1% to a 2-1/2 week low.
Hess Corporation reported better-than-expected Q3 results on Oct. 30 with an adjusted EPS of $2.14 and revenue of $3.2 billion. However, shares of HES fell marginally due to a decline in crude oil prices, which dropped to $77.06 per barrel from $84.07 a year ago, raising concerns about future profitability.
Marathon Oil Corporation (MRO), a key player in the industry, has outperformed both HES and IEO, with an 18.2% gain on a YTD basis and 12.8% returns over the past year.
Wall Street is moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 14 analysts in coverage. The mean price target of $163.69 reflects a 14.9% premium over current price levels.
