When 19-year-0ld Leon Hess formed his namesake company in 1933, climate change and carbon dioxide emissions were not likely at the top of his mind. Today, Hess, a global producer of oil and natural gas, has been recognized for its climate change stewardship by the Carbon Disclosure Project in its CDP Climate Change Scores for 2022.
Being a responsible steward of the environment hasn't prevented this energy superstar from fueling explosive growth, or a potential new breakout from a flat base.
In addition to landing on the IBD Breakout Stocks Index, Hess has pulled off a stock-list trifecta, securing spots on the IBD 50, IBD Big Cap 20 and IBD Stock Spotlight lists.
Further showcasing its credentials as an ESG and climate change leader, Hess made IBD's list of the Best 100 ESG Stocks. XOM stock also made this prestigious list of companies with responsible environmental, social and governance principles and practices.
HES stock also found a place on the latest list of new buys by the best mutual funds. It joins a wide list of energy sector and climate change names, including Exxon Mobil, Phillips 66, BP and Northern Oil & Gas.
See All The Names On The IBD Breakout Stocks Index
Climate Change And Carbon Credits
In December, Hess teamed up with the government of Guyana to announce a REDD+ carbon credits purchase agreement. The deal sets the stage for the purchase of high-quality REDD+ carbon credits, independently verified to represent permanent and additional carbon emission reductions.
The long-term agreement calls for Hess to buy a minimum of $750 million worth of carbon credits from 2022 to 2032, directly from the Government of Guyana.
Hess Fuels 575% Growth
Boosted by impressive growth, Hess earns the highest-possible 99 Composite Rating, tying Murphy Oil for top billing in the Oil & Gas-International Exploration & Production group. The industry ranks a solid No. 37 among the 197 groups IBD tracks.
Last quarter, Hess generated 575% earnings growth. Over the last three quarters, the oil stock has pumped out average EPS growth of 477%. When Hess next reports on Jan. 25, analysts forecast another triple-digit gain with a 102% increase.
Regarding top-line growth, the company has delivered revenue gains ranging from 40% to 90% over the last seven quarters.
HES Stock Primes Buy Point In Flat Base
Hess retook its 10-week moving average after a brief two-week breakdown in September and continues to form a flat base. The buy point is 149.93.
This is a second- and early-stage base pattern, which is more likely to succeed. That bodes well for Hess, especially if the market indexes can continue to build on the new uptrend.
So, as Hess earns accolades for its climate change initiatives and CO2 reduction efforts, let's see if the stock can propel a new run in heavy volume.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
