Natural Gas Prices Could Skyrocket After Ukraine Invasion: 5 Stocks to Buy Now

Investing

Published: February 24, 2022 1:19 pm

The Russian invasion of Ukraine will have far-reaching considerations. One that will affect Europe directly is that Russia supplies about 35% of the natural gas used across the European Union. With Germany freezing the Nord Stream 2 pipeline, things could get pretty dicey, especially with another month of winter left.

The Nord Stream 2 project, which effectively doubles the capacity of an already operational Nord Stream pipeline, has been completed but cannot start operations until Germany’s energy regulator gives the go-ahead, which looks very doubtful now after hostilities have begun.

As a result, natural gas prices are heading higher. Despite the constant climate change rhetoric and opposition to fossil fuels, among the cleanest burning fuels are natural gas and liquified natural gas (LNG). In fact, LNG has proven to be better than any other fossil fuel for the environment, as it generates 30% less carbon dioxide than fuel oil and 45% less than coal. While LNG still does have an environmental footprint, it contributes to far fewer carbon emissions.

Five top companies stand to benefit from this disruption, and all are outstanding investing ideas now and in the future, when the situation in Ukraine is sorted out. We screened our 24/7 Wall St. database and found five large-cap stocks are ideal for growth stock investors looking to capitalize on the solid pricing and demand environment. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Baker Hughes

This stock makes sense for investors looking for energy exposure via services. Baker Hughes Co. (NYSE: BKR) is an international industrial service company and one of the world’s largest oilfield services providers.

The company provides the oil and gas industry with products and services for oil drilling, formation evaluation, completion, production and reservoir consulting, and it is the second-largest oilfield services and equipment company in the world by market cap.

Baker Hughes prides itself on being a self-described energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and with operations in over 120 countries, the firm’s innovative technologies and services are taking energy forward.

Shareholders receive a 2.79% dividend. BofA Securities has a Buy rating on Baker Hughes stock, and the firm’s $35 price target compares with a $32.41 consensus. Shares traded on Thursday over the $28 level.