Schaeffer's Top Stock Picks for '25

3 Energy Stocks Dividing Jim Chanos, Wall Street

Analysts are mostly bullish on SolarCity Corp (NASDAQ:SCTY), Cheniere Energy, Inc. (NYSEMKT:LNG), and Chevron Corporation (NYSE:CVX)

Dec 18, 2015 at 1:03 PM
facebook X logo linkedin


Notorious short-seller Jim Chanos is waxing -- unsurprisingly -- pessimistic on crude prices. As such, he's bearish on the major oil stocks, and is also short on alternative energy stock SolarCity Corp (NASDAQ:SCTY), according to a Thursday night interview with CNBC. However, when looking at some of the names he's spoken out against, it's interesting to note the difference of opinion between him and the majority of analysts on Wall Street. 

Starting with Chanos' short position on SCTY, the shares have given back 2% today at $56.10. It's possible some traders are reacting to Chanos' comments, but it could also be the case that the equity is letting off some steam following a sector-wide surge in alternative energy stocks. Case in point, SCTY's 14-day Relative Strength Index (RSI) comes in at 83 -- well into overbought territory. 

Most analysts, though, are strong believers in the stock, which holds a less than 5% year-to-date lead. Specifically, 83% of covering brokerage firms consider SolarCity Corp a "buy" or better. If the shares extend today's downturn, a round of negative notes from analysts could intensify losses.

Chanos also spoke out again Cheniere Energy, Inc. (NYSEMKT:LNG). The energy stock has dropped 4.1% today at $35.75, and has lost almost half its value in 2015. In fact, the equity earlier hit a two-year low of $35.55. 

Regardless, analysts have high hopes for LNG. Seventy-one percent of brokerage firms say it's at least a "buy." What's more, Cheniere Energy, Inc.'s average 12-month price target stands at $71.40 -- about double current levels. 

Chanos insisted he's bearish on all major oil stocks, including Chevron Corporation (NYSE:CVX). At last check, CVX has dropped 0.2% to hit $90.32. While the oil stock is well below breakeven on the year, it's 14.6% higher in the current quarter, and seems to have found support atop the $90 mark. 

Most those tracking the stock on Wall Street have bullish expectations. Eleven brokerage firms call CVX a "buy" or better, compared to just five "hold" ratings, and zero "sells." Also, Cowen and Company raised its price target on Chevron Corporation to $122 from $95 -- annual-high territory -- yesterday morning. 
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?