IMO - IMO

Imperial Oil (AMEX:IMO) Stock, Quote.Headers.trade-ideas

Imperial Oil

Imperial Oil Ltd is one of Canada's largest integrated oil companies. It is active in all phases of the petroleum industry in Canada, including the exploration for, and production and sale of, crude oil and natural gas. It is a major producer of crude oil, the largest petroleum refiner, a leading marketer of petroleum products, and a major producer of petrochemicals. The company also pursues lower-emission business opportunities including carbon capture and storage, hydrogen and lower-emission fuels. The company's operations are conducted in three main segments: Upstream, Downstream, and Chemical. The majority of revenue is from the downstream segment. The Downstream segment is organized and operates to refine crude oil into petroleum products and to distribute and market these products.

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Imperial Oil Limited (AMEX:IMO) has experienced 16% growth in its share price year to date (YTD), significantly outperforming the broader oil and energy sector, which has seen a 0.3% decline. This stark disparity raises a key question for investors: Should they invest in the stock now or wait for a more favorable opportunity?

Imperial&#39;s Shares Gain 16% YTD: Should You Buy or Wait for Now?

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Imperial Oil reported higher first-quarter EPS and Upstream production, but lower net income. Dividend declared and carbon capture project initiated.

Production Up, Profit Down: Imperial Oil Navigates Seasonal Trends In Q1

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Sharp increase in oil prices has led to outperformance of energy stocks, with WTI rising 20% this year. EIA forecasts $90/bbl in Q2 2024 and $3.60/gal in retail gasoline prices by 2024. 3 energy firms in top 10 S&amp;P 500 performers YTD and many more set to report earnings in April 2024.

3 Energy Stocks Stand Among S&amp;P 500&#39;s Top 10 Performers In 2024 As Oil Prices Reach $90

Imperial Oil Ltd

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RBC Capital analyst Greg Pardy reiterates Imperial Oil (TSX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#TSX">IMO</a>) with a Sector Perform and maintains C$99 price target.

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TSX:IMO

RBC Capital Reiterates Sector Perform on Imperial Oil, Maintains C$99 Price Target

Imperial Oil Limited (AMEX:IMO) has experienced 16% growth in its share price year to date (YTD), significantly outperforming the broader oil and energy&nbsp;sector, which has seen a 0.3% decline. This stark disparity raises a key question for investors: Should they invest in the stock now or wait for a more favorable opportunity?
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/bb/77850.jpg?v=686295297" />
Image Source: Zacks Investment Research
Based in Calgary, Imperial is more than just a Canadian oil company; it&#39;s a major player with a multi-layered portfolio that includes oil and gas production, refining, marketing and chemical manufacturing. As Canada&#39;s largest jet fuel supplier and a leading asphalt producer, the integrated oil and gas company holds a significant position in the market. The company also benefits from the expertise and resources of ExxonMobil (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>), which owns a substantial 69.6% stake.
In simple terms, IMO makes money by finding and extracting oil and gas, refining those into products like gasoline and diesel, and selling them to its customers.
So, what&#39;s fueling Imperial&#39;s rise? Let&#39;s delve into the key drivers behind its impressive YTD performance and explore whether this momentum is likely to continue or not.
<h2>Promising Factors</h2>
Strong Financial Performance and Cash Flow: IMO has consistently reported strong financial performance, with second-quarter 2024 net income of C$1.1 billion, a significant year-over-year increase from C$675 million. The company also generated C$1.6 billion in cash flow from operations during the quarter, indicating IMO&#39;s ability to generate substantial cash from its core business.
This strong cash generation allows the company to comfortably fund its shareholder returns through dividends and share buybacks while maintaining a solid cash position for growth and operational flexibility. Currently, the company carries a Momentum Score of A.
Production Growth and Operational Efficiency:&nbsp;IMO&#39;s upstream production hit a 30-year high in second-quarter 2024, averaging 404,000 barrels per day (bpd). This was driven by record output at key assets like Kearl, which achieved 255,000 bpd and Cold Lake, which saw production rise to 147,000 bpd.&nbsp;
<img alt="Imperial Oil Limited" src="https://staticx-tuner.zacks.com/images/articles/charts/dc/77877.jpg?v=703470104" />
Image Source: Imperial Oil Limited
The company has been successfully executing turnaround activities ahead of schedule and below cost expectations, reducing downtime and improving operational efficiency. This focus on cost reduction is exemplified by Kearl&#39;s significant reduction in operating costs per barrel, which is a positive long-term driver for profitability. Additionally, the Trans Mountain Pipeline Extension will boost Imperial by adding 590,000 bpd of capacity for oil sands, improving market access and pricing, and supporting growth.
Renewable Energy Investment: In response to global climate concerns and a transition to greener energy, IMO is developing Canada&#39;s largest renewable diesel facility at its Strathcona refinery. After completion, it will produce more than one billion liters of renewable diesel yearly, helping to reduce carbon emissions and positioning the company for growth in the low-carbon energy market.
This strategic investment shows that IMO is not only committed to its traditional fossil fuel business but is also expanding into more sustainable energy solutions. This may improve the company&#39;s long-term resilience and attractiveness to environmentally conscious investors.
Favorable Market Dynamics: The narrowing spread between West Texas Intermediate (&quot;WTI&quot;) and Western Canadian Select (&quot;WCS&quot;) has improved IMO&#39;s price realizations. The WTI/WCS differential has been tightening due to increased pipeline capacity, which benefits Canada&#39;s producers like IMO by improving the profitability of heavy oil exports. This reduced-price volatility and stronger price realizations in the upstream segment have led to a significant improvement in Imperial&#39;s cash flows, positioning the company well for further growth.
Shareholder-Friendly Policies: IMO has a strong track record of returning cash to its shareholders through dividends and share buybacks. In second-quarter 2024, the company declared a dividend of 60 Canadian cents per share and plans to repurchase up to 5% of its outstanding shares by the end of the year. This not only rewards investors but also signals management&#39;s confidence in the company&#39;s future performance.
<h2>IMO Stock: Cautionary Notes</h2>
Exposure to Oil Price Volatility: Like most oil and gas companies, IMO&#39;s earnings are highly sensitive to fluctuations in oil prices. While current oil prices are favorable, any downturn in the market could significantly impact the company&#39;s revenues and profitability. For example, if geopolitical tensions ease or there is a global economic slowdown, oil demand could decrease, putting pressure on prices and affecting Imperial&#39;s bottom line. Imperial&#39;s reliance on the oil sector makes it vulnerable to cyclical downturns and commodity price risks, which can lead to lower margins and weaker financial performance in challenging market conditions.
Environmental and Regulatory Risks: IMO operates primarily in Canada, where environmental regulations are stringent. The company is exposed to environmental risks, including wildfires in Western Canada, which have already posed threats to its production sites like Kearl and Cold Lake. Additionally, future carbon pricing or stricter environmental regulations could increase operating costs, affect project viability, or lead to fines and penalties if IMO fails to meet regulatory standards. The company&#39;s large-scale oil sands operations make it a target for environmental concerns, which could also affect investor sentiment.
Weaker Refining Margins: Despite strong upstream performance, IMO&#39;s downstream segment, particularly refining, faced challenges in second-quarter 2024. Refining margins were down due to weaker market conditions and softer crack spreads, particularly in gasoline and diesel. Lower refining margins reduce the company&#39;s overall profitability, particularly in periods of high oil prices when refining costs may not be fully passed on to consumers. The company&#39;s heavy reliance on refined product sales could hurt earnings if these margin pressures persist.
High CapEx Spending Commitments: IMO has significant capital expenditure (&quot;CapEx&quot;) commitments, particularly related to maintaining the company&#39;s upstream assets and advancing its renewable energy projects. While these are long-term investments that could benefit the company, the upfront costs are high, with second-quarter 2024 CapEx reaching C$462 million. &nbsp;
Furthermore, IMO&#39;s management has outlined a capital spending budget of C$1.7 billion for 2024. Any delays or cost overruns in these projects could negatively impact the company&#39;s financials in the short term. Moreover, if oil prices decline, the company could face pressure to scale back or delay its CapEx programs, which may hinder IMO&#39;s growth prospects.
Geopolitical and Market Dependence: While IMO has strong domestic operations, it is heavily concentrated in Canada and highly dependent on local market conditions. Any adverse changes in Canada&#39;s energy policies, such as increased taxes or stricter regulations on oil sands, could negatively impact the company&#39;s operations.
Additionally, Imperial&#39;s exposure to global market dynamics, such as supply chain disruptions, fluctuating demand for oil, or competition from international oil producers, could impact the company&#39;s ability to maintain its competitive position.
<h2>IMO Stock:&nbsp;Final Thoughts&nbsp;</h2>
Imperial&#39;s impressive stock performance and strategic initiatives paint a promising picture, with the company currently trading 15% away from its 52-week high. The company&#39;s strong financials, operational efficiencies and green energy investments suggest a bright future. However, factors like oil price volatility, regulatory risks and high CapEx warrant careful consideration.
Of the 15 brokers covering IMO stock, four have given Strong Buy recommendations, while 11 have rated it as Hold and there are no Sell recommendations. With a Zacks Rank #3 (Hold), waiting for a more favorable entry point may be prudent before adding the stock to your portfolio.
<h2>Key Picks</h2>
Investors interested in the energy sector might look at some better-ranked stocks like MPLX LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mplx#NYSE">MPLX</a>), sporting a Zacks Rank #1 (Strong Buy), and Vaalco Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/egy#NYSE">EGY</a>), carrying a Zacks Rank #2 (Buy) at present.
Findlay, OH-based MPLX LP is valued at $44.68 billion. In the past year, its shares have risen 25.7%. MPLX owns and operates midstream energy infrastructure and logistics assets in the United States. It operates under two segments, namely Logistics and Storage, and Gathering and Processing.
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Houston, TX-based Vaalco Energy is valued at $579.92 million. The oil and gas exploration and production company currently pays a dividend of 25 cents per share, or 4.47%, on an annual basis. EGY is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
<a href="https://www.zacks.com/stock/news/2336551/imperial-s-shares-gain-16-ytd-should-you-buy-or-wait-for-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2336551">To read this article on Zacks.com click here.</a>
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Imperial's Shares Gain 16% YTD: Should You Buy or Wait for Now?

RBC Capital analyst Greg Pardy reiterates Imperial Oil (TSX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#TSX">IMO</a>) with a Sector Perform and maintains C$108 price target.

RBC Capital Reiterates Sector Perform on Imperial Oil, Maintains C$108 Price Target

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 7.98% on an annualized basis producing an average annual return of 20.59%. Currently, Imperial Oil has a market capitalization of $36.39 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $262.24 today based on a price of $67.92 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725649344_0_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $100 In This Stock 5 Years Ago, You Would Have $300 Today

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 11.93% on an annualized basis producing an average annual return of 25.81%. Currently, Imperial Oil has a market capitalization of $41.43 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $315.42 today based on a price of $77.31 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1724695216_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning Imperial Oil Stock In The Last 5 Years

General

CORRECTION: RBC Capital PT Raise On Imperial Oil Was Aug. 8

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 10.9% on an annualized basis producing an average annual return of 23.52%. Currently, Imperial Oil has a market capitalization of $38.47 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $288.04 today based on a price of $71.79 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723147350_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

RBC Capital analyst Greg Pardy maintains Imperial Oil (TSX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#TSX">IMO</a>) with a Sector Perform and raises the price target from C$105 to C$108.

RBC Capital Maintains Sector Perform on Imperial Oil, Raises Price Target to C$108

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) reported quarterly earnings of $2.11 per share which beat the analyst consensus estimate of $1.81 by 16.57 percent.

Earnings Beats

Imperial Oil Q2 2024 GAAP EPS $2.11 Beats $1.81 Estimate

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 7.8% on an annualized basis producing an average annual return of 20.64%. Currently, Imperial Oil has a market capitalization of $37.40 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $254.47 today based on a price of $69.80 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721667615_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In Imperial Oil 5 Years Ago Would Be Worth Today

Wolfe Research analyst Doug Leggate reinstates Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) with a Outperform.

Initiation

Wolfe Research Reinstates Outperform on Imperial Oil

Scotiabank analyst Jason Bouvier maintains Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) with a Sector Outperform and lowers the price target from C$111 to C$110.

Scotiabank Maintains Sector Outperform on Imperial Oil, Lowers Price Target to C$110

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 6.1% on an annualized basis producing an average annual return of 19.41%. Currently, Imperial Oil has a market capitalization of $36.77 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $240.35 today based on a price of $68.62 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720638062_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In This Stock 5 Years Ago Would Be Worth $200 Today

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 6.84% on an annualized basis producing an average annual return of 19.96%. Currently, Imperial Oil has a market capitalization of $36.84 billion. 
Buying $1000 In IMO: If an investor had bought $1000 of IMO stock 5 years ago, it would be worth $2,508.21 today based on a price of $68.75 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1719261101_0_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 6.23% on an annualized basis producing an average annual return of 19.28%. Currently, Imperial Oil has a market capitalization of $35.11 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $239.51 today based on a price of $65.52 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1717693281_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 6.9% on an annualized basis producing an average annual return of 20.54%. Currently, Imperial Oil has a market capitalization of $37.15 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $253.53 today based on a price of $69.34 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1716319825_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In Imperial Oil 5 Years Ago Would Be Worth This Much Today

Imperial Oil (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#AMEX">IMO</a>) has outperformed the market over the past 5 years by 6.97% on an annualized basis producing an average annual return of 19.96%. Currently, Imperial Oil has a market capitalization of $36.90 billion. 
Buying $100 In IMO: If an investor had bought $100 of IMO stock 5 years ago, it would be worth $242.84 today based on a price of $68.87 for IMO at the time of writing.
<h3>Imperial Oil's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1715094079_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $100 In This Stock 5 Years Ago, You Would Have $200 Today

RBC Capital analyst Greg Pardy maintains Imperial Oil (TSX:<a class="ticker" href="https://www.benzinga.com/stock/IMO#TSX">IMO</a>) with a Sector Perform and raises the price target from C$100 to C$105.

RBC Capital Maintains Sector Perform on Imperial Oil, Raises Price Target to C$105

Imperial Oil Limited&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMO#NYSE">IMO</a>) reported first-quarter FY24 EPS of C$2.23,&nbsp;higher than C$2.13 a year&nbsp;<a target="_blank" href="https://news.imperialoil.ca/news-releases/news-releases/2024/Imperial-announces-first-quarter-2024-financial-and-operating-results/default.aspx" rel="noreferrer noopener">ago</a>.
Net income declined to C$1.20 billion from C$1.25 billion a year ago, reflecting an expected seasonal decrease in&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">Upstream production volume</a>.
Total revenue and other income stood at C$12.3 billion vs. C$12.1 billion a year ago.
Upstream production averaged 421,000 gross oil-equivalent barrels per day, up from 413,000 gross oil-equivalent barrels per day a year ago. At Kearl asset, quarterly&nbsp;total gross production&nbsp;averaged 277,000 barrels per day (196,000 barrels&nbsp;Imperial&#8217;s&nbsp;share, the highest ever first-quarter production in the&nbsp;asset&#8217;s&nbsp;history),
Downstream throughput averaged 407,000 barrels daily, reflecting&nbsp;Nanticoke&#8217;s&nbsp;highest first-quarter throughput. Refinery capacity utilization was 94%, and petroleum product sales were 450,000 barrels daily.
Average bitumen realized prices increased to C$66.56 per barrel from C$50.33 a year ago, and synthetic crude oil sales&nbsp;price&nbsp;declined to C$93.51&nbsp;from C$102.45 the prior year.
Operating cash flow stood at C$1.08 billion, and capital and exploration expenditures came in at C$496 million in the quarter.
Dividend: The company paid C$278 million in dividends to shareholders in the quarter.&nbsp;
Imperial declared a second-quarter dividend of C$0.60 per share, payable on July 1 to shareholders of record as of June 3.
In March, the company said&nbsp;that the&nbsp;regulatory filings began for the proposed Pathways Alliance carbon capture and storage project, starting with transportation network applications.&nbsp;
Brad Corson, chairman, president&nbsp;and&nbsp;chief executive officer, said,&nbsp;&#8220;The regulatory applications represent an important milestone.&nbsp;Our industry has an important role to play in the energy transition, and Imperial remains well positioned to continue pursuing strategic opportunities to reduce emissions, provide economic benefits for local and Indigenous communities and deliver value for our shareholders.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38223559/iea-slashes-oil-demand-forecast-electric-vehicles-and-slowdown-put-brakes-on-growth" rel="noreferrer noopener">IEA Slashes Oil Demand Forecast: Electric Vehicles and Slowdown Put Brakes on Growth</a>
Price Action: IMO shares are trading lower by 0.60% at $70.84 at the last check Friday.
Photo via Shutterstock

Earnings Misses

CORRECTION: Imperial Oil Q1 EPS $1.65 Beats $1.51 Estimate, Sales $9.11B Miss $12.57B Estimate.

Imperial Oil declares CAD 0.60 dividend

Imperial Oil (IMO) has shared an update. Imperial Oil Limited has declared a quarterly cash dividend of 60 cents per share for Q3 2024, to be paid ...

Imperial Oil Announces Q3 2024 Quarterly Dividend Payout

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Imperial Oil (NYSEMKT:<a href="https://investorplace.com/stock-quotes/imo-stock-quote/">IMO</a>) just reported results for the second quarter of 2024.<ul><li>Imperial Oil reported earnings per share of $1.54. This was above the analyst estimate for EPS of $1.42.</li><li>The company reported revenue of $9.78 billion.</li><li>This was 0.43% better than the analyst estimate for revenue of $9.74 billion.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
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									</ul>The post <a href="https://investorplace.com/earning-results/2024/08/imo-stock-earnings-imperial-oil-for-q2-of-2024/">IMO Stock Earnings: Imperial Oil Beats EPS, Beats Revenue for Q2 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

IMO Stock Earnings: Imperial Oil Beats EPS, Beats Revenue for Q2 2024

Imperial Oil Limited (IMO) Q2 2024 Earnings Call Transcript

Analysts fell to the sidelines weighing in on Devon Energy (DVN – Research Report), Imperial Oil (IMO – Research Report) and Kinetik (KNTK – Resear...

Analysts Offer Insights on Energy Companies: Devon Energy (DVN), Imperial Oil (IMO) and Kinetik (KNTK)

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Red ink is usually never a pleasant sign, especially after you acquired a significant position in certain publicly traded companies. Nevertheless, cheap stocks also provide a long-term opportunity for forward-thinking speculators. It takes discipline to buy the pain and not be discouraged with the volatility. However, if you pick the right ideas, the immediate discomfort can lead to long-term rewards.



Of course, selecting the right ideas is easier said than done. For retail investors, it&rsquo;s important to ignore much of the noise of nominally cheap stocks. Sure, picking up something for a few bucks a share might seem psychologically satisfying. However, you want to acquire quality names at bargain prices. Otherwise, those cheap securities can become even cheaper.



With this list of intriguing ideas, we&rsquo;re only dealing with analyst-approved ideas. If the experts don&rsquo;t like it, there may be less of a reason to go contrarian on it. More importantly, these businesses can be set for future growth; in other words, we&rsquo;re likely dealing with legitimate discounts. On that note, below are cheap stocks to consider.



<h2>Imperial Oil (IMO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/10/oil-price-predictions1600-300x169.png" alt="Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions"><div>Source: Golden Dayz / Shutterstock.com</div></div>Falling under the integrated oil and gas industry, Imperial Oil (NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/imo-stock-quote/">IMO</a>) operates in multiple components of the hydrocarbon value chain. Primarily, it&rsquo;s involved in the exploration and production of petroleum products (upstream). It also features a downstream business unit, which deals with refining and marketing. Thanks to geopolitical flashpoints, it wouldn&rsquo;t be shocking to see IMO stock rise from the implications of supply chain disruptions.



Now, because of Imperial&rsquo;s strong performance in the charts, IMO doesn&rsquo;t immediately come across as one of the cheap stocks to buy. However, the company&rsquo;s valuation relative to sales is very reasonable, <a href="https://finance.yahoo.com/quote/imo/key-statistics">trading at 1.14X</a>. In contrast, the average integrated oil and gas company <a href="https://fullratio.com/ps-ratio-by-industry">runs a sales multiple of 1.12X</a>. In the prior year, the market accepted a running average of 1.02X.



Where things get interesting is in the projected financials. Covering experts believe that fiscal 2024 revenue could land at $37.96 billion, up 1.9% from last year&rsquo;s print of $37.25 billion. That doesn&rsquo;t sound like much. However, global supply chain disruptions could cynically boost demand. If so, the high-side view of $45.15 billion could be in play, making IMO one of the cheap stocks to consider.



<h2>PagSeguro Digital (PAGS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/07/fintech_1600-300x169.jpg" alt='undervalued fintech stocks A concept image of a hand reaching toward the word "Fintech," which is surrounded by icons representing money and growth. Fintech Stock Bargains, fintech stock'><div>Source: Wright Studio / Shutterstock.com</div></div>Falling under the financial technology (fintech) realm, PagSeguro Digital (NYSE:<a href="https://investorplace.com/stock-quotes/pags-stock-quote/">PAGS</a>) is an exciting enterprise if you&rsquo;re into emerging market names. Based in Brazil, PagSeguro offers point-of-sale devices and e-commerce solutions for small and medium-sized businesses. As digital payments gain traction in many parts of the world, PagSeguro may forge a key market position in Brazil and surrounding regions.



Right now, PAGS stock trades at 2.4X trailing-year revenue. That&rsquo;s a bit higher than the prior year&rsquo;s running average of 2.01X. However, in the first quarter of this year, the market accepted a multiple of 2.56X. Therefore, a positive catalyst could see PagSeguro rising to its prior valuation. Even better, the underlying infrastructure software industry features a sales multiple of just under 4X.



Looking ahead, analysts anticipate that PagSeguro may post sales of $3.26 billion. If so, that would imply a 4.8% lift from last year&rsquo;s print of $3.11 billion. In the following year, sales could rise to $3.56 billion. Further, the high-side estimate calls for $3.87 billion, making the already low multiple even more attractive. Therefore, PAGS is one of the cheap stocks to keep on your radar.



<h2>Equinox Gold (EQX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/09/costco-gold-bars1600-300x169.png" alt="Gold bars and Financial concept, studio shots. Costco's gold bars, cost stock"><div>Source: Misunseo / Shutterstock.com</div></div>While perhaps the riskiest idea on this list of cheap stocks, Equinox Gold (NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/eqx-stock-quote/">EQX</a>) arguably offers the most potential. Falling under the broader materials ecosystem, Equinox focuses on precious metals. Based in Canada, the company is involved in the acquisition, exploration and development of gold properties, primarily in the Americas.



Fundamentally, a likely dovish pivot in monetary policy could boost the underlying gold price. If that happens, Equinox could see its own demand profile rise. Therefore, the current price-to-sales ratio of 1.77X might not last too long. Yes, it&rsquo;s a bit of a premium relative to the prior year&rsquo;s running multiple of 1.51X. However, the gold sector carries an average ratio of 2.63.



Ultimately, though, the biggest catalyst to focus on is the projected growth. By the end of fiscal 2024, analysts are looking for revenue of $1.57 billion. If so, that would imply a 44% growth rate from last year&rsquo;s print of $1.09 billion. In the following year, sales could soar to $2.32 billion.



Again, the lowly sales multiple probably won&rsquo;t last.



On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/08/3-cheap-stocks-that-are-looking-extra-spicy/">3 Cheap Stocks That Are Looking Extra Spicy</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Cheap Stocks That Are Looking Extra Spicy

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