Stock of the Day

September 13, 2023

Hess (HES)

$147.96
-$3.00 (-2.0%)
Market Cap: $46.51B

About Hess

Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The company operates in two segments, Exploration and Production, and Midstream. It conducts production operations primarily in the United States, Guyana, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities principally offshore Guyana, the U.S. Gulf of Mexico, and offshore Suriname and Canada. The company is also involved in gathering, compressing, and processing natural gas; fractionating NGLs; gathering, terminaling, loading, and transporting crude oil and NGL through rail car; and storing and terminaling propane, as well as providing water handling services primarily in the Bakken Shale plays in the Williston Basin area of North Dakota. The company was incorporated in 1920 and is headquartered in New York, New York.

Hess Bull Case

Here are some ways that investors could benefit from investing in Hess Co.:

  • Hess Co. has shown strong institutional support, with 88.51% of its stock owned by institutional investors and hedge funds, indicating confidence in the company's future performance.
  • The recent stock price of Hess Co. is $149.21, reflecting a positive market sentiment and potential for growth.
  • In the latest quarter, Kentucky Retirement Systems Insurance Trust Fund increased its stake in Hess Co. by 23.1%, suggesting that institutional investors are bullish on the company's prospects.
  • Hess Co. has a solid financial position, with a current ratio of 1.12 and a quick ratio of 1.13, indicating good short-term financial health and ability to meet its obligations.
  • The company has a manageable debt-to-equity ratio of 0.72, which suggests that it is not overly reliant on debt to finance its operations, reducing financial risk.

Hess Bear Case

Investors should be bearish about investing in Hess Co. for these reasons:

  • CEO John B. Hess recently sold 92,894 shares of the company's stock, which could raise concerns about insider confidence in the company's future performance.
  • Despite recent gains, the stock has a PE ratio of 16.58, which may indicate that it is overvalued compared to its earnings, potentially limiting future price appreciation.
  • Hess Co. has experienced fluctuations in trading volume, with recent volumes around 2,026,581 shares, which may suggest volatility and uncertainty in investor sentiment.
  • Insider ownership is relatively low at 9.76%, which may indicate a lack of alignment between management and shareholder interests.
  • Recent market conditions and economic factors could impact the oil and gas sector, which Hess Co. operates in, leading to potential risks for investors.

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