Direct access trading platforms have made online stock trading a lot more popular in recent years than before. It shows that the fear of investing has significantly come down and people do consider stocks as great investment options. But reading the market is a very important trait. The oil industry is a case in point. There are some opportunities here despite the fact that the whole industry has been rocked by volatility.
The industry has been through some volatile times in the past decade. That has made investors really disillusioned, though in reality they need to factor commodity volatility which is a natural occurrence many a time. But what's difficult is finding stocks that work to the advantage of their investment goals. Motley Fool analysts have come up with some stocks in the oil industry that are the best in the current market situation. Analysts estimate that these stocks could even end up offering significant value to long-term investors. Interestingly, one of these stocks is Core Laboratories ($CLB).
What Makes Core Laboratories Special
Analyst Jason Hall recommends Core Laboratories that actually provides services to oil producers rather than being an oil producer itself. But even such a company does get affected when oil suffers. And even when oil demand rises again, it takes time for oilfield services companies to bounce back. Often, these companies have to spend fixed costs on equipment which they need to run even during the tough times. Hall points out that Core Laboratories has been an exception here.
It was over 15 years ago that Core did not generate a profit. Since then it has also been experiencing positive free and operating cash flows. The key to this success is the company's light-asset model that enables it to earn even with slowing business. And it's a more sophisticated company, being a tech leader. Times are tough now, but Hall argues that it is no justification for the massive hit taken by Core's stock price. Its earnings and cash flows are a bit squeezed now, and that's largely due to the recent sharp fall in oil prices.
Attractive Stock Price Hard to Resist
The company's shares are currently the cheapest in close to a decade. That makes this a golden opportunity to buy this stock. Hall points out that the services it provides oil producers are integral and they enable it to earn in almost every area of the cycle. A 3.3% dividend yield at the recent prices has enabled shareholders to earn significantly.
It's quite possible many traders never thought of this stock. That's why analyst opinions are essential. They help understand the ebb and flow of the market and make the right decisions, pointing out opportunities you probably thought never existed. With advanced trading software, the stock market is a lot more accessible to the layman. And TradeZero fits the bill of an advanced online trading brokerage. Contact us at 1 954-944-3885 or email firstname.lastname@example.org.
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