Prudent Speculator: Two Blue-Chip Energy Stocks For Your Watch List

(List compiled by Becca Lipman. All data sourced from and Finviz.)

Here we explore two blue-chip companies that The Stock Adivsershave identified as their monthly stock picks: Chesapeake Energy (CHK) and Eni S.p.A. (E).

 A blue-chip company, as defined by Investopedia is “a nationally recognised, well-established and financially sound company.” 

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1. Chesapeake Energy Corporation (CHK): Independent Oil & Gas Industry. Market cap of $21.99B. Current price at $34.72. Exhibiting strong upside momentum–currently trading 8.94% above its SMA20, 14.13% above its SMA50, and 21.11% above its SMA200. The stock has had a good month, gaining 17.63%.

Chesapeake Energy is “one of the largest independent exploration and production companies in the U.S.” and specialises in U.S onshore natural gas production.  The company has done very well for itself, steadily rising in value over the last year. It’s current price stands at $34.72/share vs. its average analyst target price of $38.74/share.

Chesapeake, according to Stock Advisers, is beginning to shift focus from natural gas towards oil due to corresponding market shifts. The industry already has a good head start, according to the company’s website they are a top 15 producer.

“The company’s focus has switched to higher-margin liquids with production in this segment expected to grow close to 200% over the next few years.”

2. Eni SpA (E): Major Integrated Oil & Gas Industry. Market cap of $87.40B. Current price at $43.38. The stock has gained 13.38% over the last year.

ENI explores for, produces, refines, transports and markets natural gas, oil and produces chemicals. ENI offers engineering and project management services to the petroleum industry operating in 80 countries. (overview from

This Italian company currently has a target price of $59.02, vs. its current price at $43.38. 

John Buckingham of The Prudential Speculator says one of the major reasons for these upbeat estimates rests on the company’s “gas and power business, which adds a measure of stability since this segment is less sensitive to volatile commodity prices… Additionally, we are encouraged by the company’s exploration momentum with recently announced oil and gas finds in Norway and Ghana.”

Although Eni has plenty of political strife on its hands  – many of their more profitable ventures are located in geopolitically unstable areas – their extensive low-cost pipelines further leave analysts optimistic.  

Interactive Chart: Press Play to see how analyst ratings have changed for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.

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