Hess Corporation Is Undervalued In Today's Market

Dec. 27, 2021 7:30 AM ETHess Corporation (HES) StockHES5 Comments

Summary

  • Hess Corporation is working through a transition, dumping billions worth of capital into exciting growth opportunities.
  • The company has a modest dividend and has indicated an interest in potential share buybacks over the next 1+ years.
  • The company is trending towards a double-digit FCF yield in the mid-2020s, helping to solidify the investment thesis.
  • We recommend investing in the company based on its recent weakness.
  • I do much more than just articles at The Energy Forum: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Marathon Petroleum To Purchase Hess Gas Stations

Joe Raedle/Getty Images News

Hess Corporation (NYSE: NYSE:HES) has dropped 20% from its 52-week highs with its market capitalization now less than $23 billion. That's despite the fact that the company is spending the 2020s in a period of transition and rapid

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This article was written by

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The Value Portfolio specializes in building retirement portfolios and utilizes a fact-based research strategy to identify investments. This includes extensive readings of 10Ks, analyst commentary, market reports, and investor presentations. He invests real money in the stocks he recommends.

He is the leader of the investing group The Retirement Forum with features including: model portfolios, macro overviews, in-depth company analysis and retirement planning information. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of HES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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