Pioneer stock is a good pick even if oil goes to $60 a barrel: Dory Wiley
- Commerce Street CEO is bullish on Pioneer Natural Resources stock.
- The oil & gas company recently raised its dividend by nearly 100%.
- Pioneer stock has come down roughly 25% in the trailing thirty days.
Pioneer Natural Resources Co (NYSE: PXD) down nearly 25% in the trailing thirty days is a fantastic opportunity to buy, as per the President and CEO of Commerce Street Holdings.
Energy trade is far from over yet
Dory Wiley says the recent sell-off does not indicate an end to the “energy trade”. He dubs PXD a good pick even if oil goes sharply down to $60 a barrel. On CNBC’s “Closing Bell: Overtime”, the expert said:
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That stock is trading at six times. You buy it based off forward projections for 2022 at $100 a barrel, you’re getting 13%. If oil does go down to $60 a barrel as the company projects, you’ll have 8.0%, that’s a great yield.
Pioneer is one of the largest producers in the Permian. In early May, the Irving-headquartered company reported market-beating results for its fiscal first quarter.
Oil supply is still chasing the demand
Wiley reiterated that the supply of oil is still lagging significantly behind the global demand that warrants sticking to the energy stocks like Pioneer Natural Resources Co. He noted:
The Secretary General of OPEC unfortunately passed away on Tuesday night but his last public remarks were: the industry faces problems in the output due to years of under investment. That’s a good clue right there.
The NYSE-listed firm recently raised its dividend by nearly 100%. Wall Street currently rates PXD at “overweight” and sees a more than 40% upside in the stock from here on average.