Supply and demand.
Never have these simple terms been more important than right now.
At the height of the COVID pandemic, gas prices were relatively cheap. No one went anywhere, so demand was low, and prices dropped in response.
The supply and demand principle has turned 180 degrees. Now, demand for gas is high … increasing prices at the pump.
The global oil market was caught off guard to this trend, as the supply of oil and gas remains below demand. But that’s changing…
With it, the demand for transporting oil and gas grows:
According to Rystad Energy, five key countries shipped 2.4 billion barrels of oil in 2020: Brazil, Norway, the United Kingdom, Canada and Russia.
By 2030, that capacity will reach 3.3 billion — a 37.5% increase. That doesn’t include the U.S.
Today’s Power Stock transports oil and other chemicals across the seas: Ardmore Shipping Corp. (NYSE: ASC).
ASC stock scores a “Strong Bullish” 99 on our Stock Power Ratings system. We expect it to beat the broader market by 3X in the next 12 months.
ASC Stock: Market-Beating Momentum + Strong Value
Two items stood out after my deep dive into ASC:
- For its recent quarter, ASC recorded $142 million in revenue — up 202.1% year over year.
- The company notched a net profit of $61 million for the quarter, compared to a $12.8 million net loss the same time a year ago.
ASC’s fundamentals are solid. It rates highest on our value and growth Stock Power Ratings (as you can see above).
Its price-to-earnings ratio is less than half what its oil industry peers average.
This tells us ASC is a far better value than its competitors.
Let’s look at that market-beating momentum:
Over the last 12 months, ASC stock has been on fire.
It climbed 265.1% during that time … showing the “maximum momentum” we love in stocks.
Its oil-and-gas support activities peers have averaged a 56.1% gain over the same time.
ASC is beating its peers by more than four times!
Ardmore Shipping Corp. stock scores a 99 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
Oil-producing countries are stepping up their oil exports to meet increasing demand.
The need to get oil from point A to point B is rising alongside production.
With outstanding value and market-breaking momentum, ASC is a strong candidate for your portfolio.
Stay Tuned: More Oil Plays on Deck
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on another Strong Bullish stock in the oil and gas space. We’ll look at one company that supplies the essential equipment for oil drilling.
Matt Clark, CMSA®
Research Analyst, Money & Markets