4 Energy Stocks at or below $10 to Buy Now By StockNews

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© Reuters. 4 Energy Stocks at or below $10 to Buy Now

Because the energy industry is thriving on rising oil prices, the shares of mega players that are currently trading at expensive valuations might witness a price decline with a gradual increase in supply capping oil prices and anticipated pressure on the stock market. Therefore, we think it could be wise to invest in low-priced energy stocks Archrock (NYSE:), VAALCO Energy (EGY), Amplify Energy (NYSE:), and Geospace Technologies (GEOS). These companies have the potential to capitalize on industry tailwinds and deliver better returns in the coming months. Let’s discuss.After witnessing a slight fall in demand in August, given the surge in COVID-19 cases in various countries and poor economic growth of China, the world’s largest crude importer, the gradual increase in demand from several countries has brought stability to oil prices since late August. But because Hurricane Ida caused massive damage to oil-producing facilities in the U.S. Gulf of Mexico, the rising demand and supply imbalance is causing oil prices to rise.

Given the resurgence of COVID-19 cases and rising inflation, many analysts expect the stock market to remain under pressure in the near term. Consequently, large-cap energy stocks, which are currently trading at expensive valuations, might witness a price decline.

Also, because the market has entered a historically tricky trading period, we think it could be wise to bet on low-priced energy stocks Archrock, Inc. (AROC), VAALCO Energy, Inc. (EGY), Amplify Energy Corp. (AMPY), and Geospace Technologies Corporation (GEOS) that are well-positioned to capitalize on the rising oil prices. Currently, trading at or below $10, we think these stocks have the potential to deliver significant returns in the coming months.

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