I have been on look out for these following stock Exxon (XOM), Pioneer Natural Resource (PXD), and Chevron (CVX). I want to invest in the long-term, but cannot figure out the best of these 3 companies to invest first. These 3 companies are good from what I am seeing on the chart. Does Fool members have any ideas?
Exxon and Chevron are the ones most people talk about. Marathon Oil for domestic operations.
Stock prices tend to follow oil prices. So buy now if you expect oil prices to rise to say $100/bbl. Otherwise they are dividend stocks.
If you expect a recession, oil prices should fall with falling demand. But then OPEC will cut production to maintain prices. So could be best to wait for bottom to buy.
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Here’s a 12 month chart comparing the companies you are looking at. XOM has done the best regarding the singular parameter of stock price. PXD is in negotiation with XOM to be bought fyi. HTH…doc
If you really can’t decide, you could instead choose to invest in XLE … basically all of them (via an ETF).
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If your long term is greater than 2 years, then I say you need to invest in solar/wind energy, EVs, battery manufacturers, and hydrogen/ammonia production.
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I’ll second that!
Oil and gas and coal will remain vitally important for decades yet, if not longer, to supply needs for energy and perhaps forever due to the needs of chemicals for products, agriculture and pharmaceuticals. But it takes tremendous resources to even maintain current production… and tremendous resources to try to expand. Bottom line, “fossil companies” tend to be slow growers with variable returns that are highly influenced by market and political events. And a lot of those returns are often dividends. If that’s what one wants, that person can make money. If they become very knowledgeable and are clever, they can make a LOT of money.
Now… IMO, the renewable industry (plural, actually) is a lot different. I’m glossing over the details, but many companies are growing like mad. Some companies and some industries are very profitable, some are barely making money and some are heading toward bankruptcy. So, it’s a great place to make a lot of money or potentially a great place to lose money.
That leads me to a some broad statements I use to guide my personal investing (no guarantees!):
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China. Incredible poltical and financial risks. An unfortunate number of companies are lying about their performance. I’ve made money with Chinese companies but I’ve decided it’s just not worth it. Staying away from China takes a lot of solar, EV and battery companies out of consideration.
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Wind. It appears that the major wind companies are struggling in a cut throat industry. For me, the returns are not attractive and neither are the risks.
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I see some outstanding companies building solar products, both panels and control systems. There are some that are good investments and some are not so good because they’re not making money. Same with EVs and batteries.
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Hydrogen/ammonia appear to have a future. BUT (IMO) it looks too early to invest in some of the small companies because it’s hard to pick winners. Again, IMO, I suspect the oil/gas companies will dominate this space. But it will be decades before those ventures mean much from a financial standpoint. And, regardless of your time horizon, it isn’t worth investing NOW in something that won’t make much difference financially for decades. Look up “time value of money” if that isn’t clear.
With all that said, I have a huge percentage of my money invested in EVs, batteries and solar (both panels and control systems). But I would bet (speaking figuratively) most Fools are missing the “best” opportunities. I put quotes on “best” because it’s both hard… and probably arrogant… to claim you or I have the BEST companies throughout our portfolios.
But… in lieu of claiming “best”, there are a few I’ll claim are “pretty darn good”:
TSLA: Known for EVs and with advantages in this space that most don’t appreciate. They also have a rapidly developing energy business in their Megapack product, which is important for load/grid balancing in an age of renewables. It looks like Megapack may become the most important part of the company in not too many years and 2023 is the year when we’ll see a meaningful contribution to the EPS. IMO: Underpriced.
ENPH: Solar control systems. Some claim these are commodity products. I just point to the top line and bottom line results to guide my opinion here. The company has guided to a “relatively” soft 1Q. But after that, it looks pretty crazy good. IMO: Underpriced.
CSIQ: I’m willing to bet that this company is not the best opportunity out there, but it appears to be pretty darn good. Appears to be on the cusp of generating rapid rises in profits, cash flow… and <hopefully…lol>… share price. I certainly welcome contrary views and other suggestions that are better because I’m always happy to learn of better opportunities. 
IMO: Underpriced.
Anyway, those are my thoughts on the subjects.
Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.
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From my point, I just do not think Exxon should buy Pioneer Natural Resource. It is only going to downgrade the stocks. And lack of dividends from Exxon.
I am also cautious about investing in Solar/Winds Energy. There is so much going on out there with these Wind Turbines and Solar Panels. There are things unforeseen. A lot of these other resources still depend on oil and gas.
EV are good. But It took up too much electricity to charge the batteries. Still more work on this before I decide to invest in it. My only cautious about EV are the safety of the drivers passengers.
Right back to gas and oil are what we still depend on. I see no time in the future that we can stop depending on gas and oil. These gas and oil stocks are good dividend stocks and great passive incomes.
Any second thoughts?
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There are less unknows about solar/wind energy than oil/gas energy.
What is your problem with safety of EV passengers? I have not heard of any problems that are different to safety of ICE passengers.
This dip in the price of crude presents an incremental buy opportunity IMHO…doc
EV = Electric Vehicles. I do not think EV is a bad thing. Batteries catch on fire at any time. This applies to both driver and passenger. If the windows are closed and doors are locked; you will never get out of the vehicle in time when there is an accident of any kind. This can malfunction. Maybe due to a workmanship defect or such. I just do not think we were very well prepared for this. More tests need to be done on this. This happened to the Tesla vehicle. This is one of those problems. There are many more. We just need more studying.
This can happen in ICE vehicles also.Very few batteries catch on fire. ICE vehicles catch on fire more often than EV.
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This is almost entirely nonsense. Cars with gasoline catch on fire a lot more often than cars with batteries do.
Mark,
Great point about ICE vehicles, but then again what is the ratio of ICE cars to battery cars. Its interesting, strange and kind of scary that cars without gasoline are catching fire spontaneously from batteries. When was there a spontaneous fire in the battery of a gasoline car? When was there a spontaneous fire from the gasoline in a car? I’m just pondering out loud…doc
I agree with that only because gasoline cars have been out for a very long time. EV has not. You can get out of gasoline cars quicker. I still think more research needs to be done with EV.
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Where there’s smoke, there’s fire. Unless it pertains to EV fires, as that’s more smoke and mirrors. There is an ongoing flow of misinformation publicized by the less informed (or downright malicious) purporting that electric vehicles and their battery chemistry are more prone to fires than their gasoline counterparts. Aside from the obvious argument that gasoline vehicles operate via combustion, a new study shows how much more prevalent gas vehicle fires are compared to EVs.