Both $Marathon(MRO)$and $ConocoPhillips(COP)$has increase by 5% since our last post ~38 hours ago. MRO open at $24.56 yesterday and at the time of writing is $26.08 while COP open at $94.27 yesterday and at the time of writing is $98.78
Pretty significant increase since our "(2nd May) What are Your Trades Today?" post, so izit too late now to invest in both of them? No, but remember that investing in the oil and gas industry carries a number of significant risks.
The oil and gas sector is an attractive sector for both day traders and long term investors, since the sector is an active and liquid market that can also serve as a portfolio diversifier and inflation hedge.
Oil and gas stocks, however, tend to be more volatile than the broader market as they are sensitive to changes in the supply and demand of the underlying commodities. In addition, oil companies are exposed to legal and regulatory risk that can be the consequence of accidents, such as oil spills.
Having said all that, both of these stock have quite low 12-month trailing price-to-earnings (P/E) ratios. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated. Hence, both of this stock have potential!
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