#7 - Tenaris (NYSE:TS)
Energy stocks have underperformed in 2024 as the price of oil fails to crack the $80 mark on a consistent basis. That’s one explanation for the poor performance of an energy-adjacent stock like Tenaris S.A. (NYSE: TS), which is down 20% in 2024.
Tenaris provides seamless and welded steel products for industrial applications, including the oil and gas industry. The company has missed on revenue and earnings expectations in the first two quarters and continues to guide to lower numbers for the remainder of the year. However, when interest rates get cut, oil and gas demand will likely increase.
The Tenaris analyst forecasts on MarketBeat give TS stock a consensus Hold rating. However, several of the price targets are above the $39 consensus target.
If you believe that lower interest rates will strengthen demand for oil and gas, TS stock is a good stock to own. The stock pays a semi-annual dividend with a 5.75% yield and a safe payout ratio of around 26%.
About Tenaris
Tenaris SA, together with its subsidiaries, produces and sells seamless and welded steel tubular products and related services for the oil and gas industry, and other industrial applications. The company offers steel casings, tubing products, mechanical and structural pipes, line pipes, cold-drawn pipes, and premium joints and couplings; and coiled tubing products for oil and gas drilling and workovers, and subsea pipelines.
Read More - Current Price
- $35.58
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $38.67 (8.7% Upside)
Industrial stocks are the backbone of the U.S. economy. But the stability of that spine doesn't come with the eye-popping growth that investors can get from technology stocks like NVIDIA Corp. (NASDAQ: NVDA).
But what these industrial stocks may lack in sizzle, they more than make up for in substance. When they are growing, it's usually at the beginning of an economy's multi-year growth cycle.
And in 2024, interest rate cuts are likely to provide the fuel for that growth. Since stocks tend to move in advance of growing earnings, you can see why analysts are starting to watch this sector closely.
You can find MarketBeat's list of the 50 largest industrial sector stocks under the Stock Lists tab. If you have more precise metrics to consider, you can use the Stock Screener tool under the Research Tools tab to filter for industrial stocks.
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