3 Hidden Gems in the Energy Sector
The energy sector has had its ups and downs in recent years. However, despite the most recent downturn, worldwide demand for energy continues to rise, which should eventually take commodity prices up with it. Because of that, investors stand to make a tidy profit by investing in companies poised to capture this growing demand, especially those with unique niches in the sector. Three such hidden gems are Alliance Resource Partners (NASDAQ: ARLP), Summitt Midstream Partners (NYSE: SMLP), and Clean Energy Fuels (NASDAQ: CLNE). Here's why we think they could fuel big-time profits for investors in the coming years.
Tyler Crowe (Alliance Resource Partners): Investing in coal today isn't much a bet on the future of energy. Rather, it's a bet that the future of energy is going to take a while to get here. As much as cheap natural gas and renewable energy has hacked away at coal's dominance as the fuel of choice for the electricity market, it still is responsible for 28% of all electricity generation in the United States. Pretty much every new power-generating facility in the U.S. today runs on natural gas or renewables, but there is still a large established base of coal-fired plants that will be around for a while during this transition phase.
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Source: Fool.com
Exxon Mobil Corp. Stock
The stock is an absolute favorite of our community with 34 Buy predictions and no Sell predictions.
With a target price of 126 € there is a slightly positive potential of 15.81% for Exxon Mobil Corp. compared to the current price of 108.8 €.
