Seeking Alpha names eight energy stocks with A+ profitability grades

what happened

As third-quarter earnings reports begin, investors are monitoring the energy sector for signals on oil and gas output, refinery operations, commodity-price trends and execution. Seeking Alpha reports that eight energy companies received an A+ Profitability Grade in its Quant Rating system.

The selection covers several parts of the industry. ConocoPhillips and Chevron Corporation lead the group, with market capitalizations of $161.10 billion and $415.82 billion, respectively. The list also contains exploration and production companies EOG Resources, Inc. and Diamondback Energy, Inc.; refiners Marathon Petroleum Corporation and Valero Energy Corporation; and Occidental Petroleum Corporation and ExxonMobil Holdings Corporation. Each company carries an A+ grade.

Seeking Alpha says the measure compares a company's ability to produce earnings and returns with other firms in its industry. Its inputs include profitability at different stages, returns generated from equity and assets, and additional efficiency indicators. The publisher states that its content is for informational purposes, does not constitute personalized investment advice, and that it is not a licensed securities dealer, broker, U.S. investment adviser or investment bank.

why it matters

The ranking puts major producers, refiners and integrated energy companies on investors' radar as third-quarter reporting gets under way. The grade describes relative financial performance against industry peers rather than offering a forecast for share prices.

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