My Favorite Energy Stock Under $10 Oil is back in the headlines as it has rocketed higher on a combination of factors over the past two months. This means oil stocks should definitely be back on...

By Jay Soloff

This story originally appeared on StockNews

Oil is back in the headlines as it has rocketed higher on a combination of factors over the past two months. This means oil stocks should definitely be back on your radar. And this under $10 oil stock has popped up on the POWR Ratings radar, Battalion Oil (BATL).

Spoiler alert, if you haven't been to the gas station in the past week, you may be in for a shock. The price of gas has risen about 28% since early July, spiking higher the past few weeks.

While I'm not personally pleased by this, it does open up more investing opportunities in stocks like Battalion Oil (BATL). This under $10 stock is set to outperform with West Texas Intermediate (WTI) right at $90 a barrel.

Battalion should not only benefit from rising oil prices, but the company has been on a focused mission this year to reduce cost. Earlier this year, BATL CEO Matt Steele said the company had reduced its corporate office workforce by 44%. Steele expects a combination of staff reductions and other cost saving measures to reduce total general and administrative costs by 40% in 2023.

The company currently trades at an astoundingly low 0.9x earnings, and 3.7x projected earnings. BATL currently trades at .45x its price to sales, and has a low price to book ratio of less than 2x.

BATL has been spending recently on several "acid gas injection" projects, which are coming online now. Those facilities are expected to save the company an additional $2.5 million per month in costs associated with outside processing facilities.

With operating margins recently coming in at 42%, and a return on equity (ROE) of 25%, rising oil prices should only bolster these outstanding numbers.

Out POWR Ratings have BATL ranked above 90% of companies in our database on the component of Value.

From my view there is no relief on the horizon for gas prices. In fact, if anything there are catalysts out there, such as the refilling of the strategic oil reserves that must take place sooner rather than later, that point to at minimum a stable price and more likely a higher oil price.

These factors should continue to support BATL, which has fallen from its highs of around $20 in 2022 to its current price just under $6.

What To Do Next?

If you like the stock shared above…then you will love this new special report sharing 3 low priced companies with tremendous upside potential.

3 Stocks to DOUBLE This Year >

BATL shares closed at $5.92 on Friday, up $0.03 (+0.51%). Year-to-date, BATL has declined -39.03%, versus a 13.80% rise in the benchmark S&P 500 index during the same period.

About the Author: Jay Soloff

Jay is a former professional market maker who cut his teeth trading on the floor of the CBOE. With more than 20 years of experience trading and investing, his focus is on making professional strategies accessible to everyone, which is exactly what does in his highly profitable POWR Income and POWR Stocks Under $10 investment advisory services.


The post My Favorite Energy Stock Under $10 appeared first on

Editor's Pick

Related Topics

Side Hustle

Anyone Can Start a Passive Income Side Hustle For Easy Money — But Only If You Know These 5 Essential Tips First.

The rise of digital automation technology has made starting a passive income side hustle easier and more accessible than ever before.

Side Hustle

He Launched His Creative Side Hustle Out of a Garage. Now It's Worth $225 Million.

Tom Humble, CXO and founder of E.C.D. Automotive Design, followed his passion for custom auto design into big business.


How to Start a 'Million Dollar' Morning Routine

Restructure your morning with a few simple steps that may help to amplify your energy.

Business News

An Hermès Heir Wants to Give Half His $12 Billion Fortune to His Gardener—and Lawyers Are Going Nuts

Nicolas Puech, the grandson of Hermès' founder, intends to legally adopt the 51-year-old former groundskeeper as his son, ensuring he inherits his billions.


Don't Just Babble on LinkedIn — You Need to Carve Out Your Own Niche. Here's Why.

To ultimately unlock the full potential of your LinkedIn experience, you need to establish yourself as a thought leader in a specific niche. This is why (and how).

Business News

This Company Promised to Transform Drive-Thrus With AI — But the Secret Powering Its Tech? Humans.

Presto Automation Inc., one of several major players in AI-ordering tech, has made headlines for using off-site employees in places like the Phillippines.