Helix Energy Solutions
This oil industry services stock holds solid value as the sector is out of favor now. Helix Energy Solutions Group Inc. (NYSE: HLX) is an international offshore energy company that focuses on subsea construction, maintenance and salvage services to the offshore natural gas and oil industry.
The firm also provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations. The company operates through three segments: Well Intervention, Robotics and Production Facilities.
Raymond James has set an $11 price target on the stock, while the consensus was last seen at $10.29. Shares were changing hands at $8.40 on Friday.
This is a small-cap gold-mining stock for aggressive accounts looking for exposure to the sector. Iamgold Corp. (NYSE: IAG) is a Canadian-domiciled company that is focused on ramping up its underground Westwood mine in Canada, as well as improving performance at its Rosebel mine in Suriname. The company’s Essakane mine in Burkina Faso is performing well.
The company reported earnings results that came in below the consensus forecast. Taxes and other expenses were higher, but Iamgold did maintain its 2019 operating guidance, despite events at Rosebel. In addition, management expects the fourth quarter to be a strong production quarter. With the stock trading at a 30% discount to the peer group based on price to net asset value analysis, achieving potential catalysts could shrink this discount.
The $4.20 Merrill Lynch price target compares with a much higher consensus target of $7.65. The shares were trading at $3.60 apiece.
Nine Energy Services
This is another smaller cap play for investors looking for oilfield services exposure. Nine Energy Services Inc. (NYSE: NINE) is an up-and-coming provider of onshore completion and production services that target unconventional oil and gas resource development. Its services include cementing, completion tools, coiled tubing, wireline and well servicing rigs. It operates in the United States and Canada, with a presence in many of the major shale basins. Revenues in 2018 were $827 million.
The company reported third-quarter adjusted EBITDA of $24 million, arriving at the low-end of management’s guidance range but 5% above consensus of $23.2 million. The beat was driven entirely by lower SG&A expenses, when excluding the restructuring and transaction costs. However, free cash flow was strong in the quarter, which should be positive for the stock.
Raymond James has an $11 price target. The consensus target is lower at $8.47, and the stock was trading at $5.50 a share.
These five stocks for aggressive accounts looking to get share count leverage on stocks have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.