Hess Corporation (HES)

Hess stock forecast: buy or sell

Hess stock outlook

  • Hess closed today at $44.68 after sinking a -9.41%.
  • The price is currently below the lower Bollinger band, which usually indicates a short-term bounce that you better not try to trade
  • From the chart point view, price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. Up to date, the uptrend marked a 72.31% gain since the beginning of this rally
  • Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas.
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Disclaimer:
The comments expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the individual conditions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for educative motives only

Hess stock chart overview

Should I buy Hess stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is HES stock a buy?

In the current situation of Hess there is not any eligible buy setup. This doesn't mean we expect a selloff for HES in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Hess stock?

"To sell or not to sell", if you are holding Hess stock?. In the same way as when we have to buy shares, choosing when is the best time to sell is not a whimsical decision, and we must adhere our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use but are only applicable for selling stocks you already own, not for shorting HES stock

As a rule of thumb, you must never mantain a trading operation that leads to higher than expected losses upon purchase. The moment to sell your stock should always be ruled by the stop-loss (automatic or manual)

Is it time to sell Hess stock?

Currently, Hess stock doesn't match any of our preferred sell setups, so if you own Hess stock and your operation is in profit probably is not time to sell now

Price lost SMA50 level

Hess shares' price gained 16.37% in a month during the time it was above the 50-d MA. Nevertheless that bullish trend may be over, or show some signs of weakening, since the price lost the sma50 level today. For mid-term investors who made profits from the stock while the price was over the average, this flag should be a heads up and a trigger to sell the stock and take their returns

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Analysts' recommendations to buy or sell Hess stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 brokerage ratings were published for Hess

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Hess ratings

Brokerage firmRating
Jun 19th, 2020
Mizuho Neutral
Jun 29th, 2020
UBS Group Neutral

Technical analysis

Hess shares started an uptrend in mid-March, and grew an amazing 72.31%. The chart shows higher tops and bottoms, and along the way provided very few buying opportunities for those who wanted to trade in. Latest low was in mid-May, when price bounced at $40.09. Currently, the price trades in a consolidation between its last top ($59.72) and its last bottom ($40.09)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Traders use supports and resistances as a way to identify price points on a chart that tend to work as glass ceiling, containing the price of an asset to move up or down. Supports are levels where the price tends to stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue falling until meeting another support level. In contrast, resistances are where the price tends to find resistance as it rises. In the same way, the price is more liable to "bounce off" at this level, and if it finally crosses this level, the price will rally more easily until it hits the next resistance

The current resistance levels are:

  • R1: $44.89 (0.47% above)
  • R2: $44.99 (0.69% above)
  • R3: $45.19 (1.14% above)
  • The current support levels are:

  • S1: $44.67 (-0.02% below)
  • S2: $44.37 (-0.69% below)
  • S3: $44.31 (-0.83% below)
  • Bollinger bands

    So-called Bollinger bands are a well-known technical strategy introduced by John Bollinger. It comprises three bands that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    When the price moves out of the band (above the upper line or below the lower line) it signals that the price is currently maintaining a very strong trend and therefore can reverse the trend to the average. In this case, the price is lower the upper band, and that should mean a possible near-term bounce (at least) until it is back above the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to plot the current and historical weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for a single day (weak signal). The RSI reading today was 40.19. Since then, Hess price collapsed a 25.12%

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    Earnings and financials

    Hess hosted the quarterly investors call and released the first-quarter report in early May. Hess posted Q1 earnings of $-0.60 per share on revenue of $1.4 billion. The Wall St estimate was $-0.63 per share on revenue of $1.4 billion.

    This compares to earnings of $0.09 per share same quarter last year, so reported EPS means a decrease of -766.67%. Sales sank a -15% on an annualized basis in the first-quarter, from $1.6B to $1.4B last quarter.

    Hess presents earnings report on Wednesday next week. Wall Street analysts forecast an earnings per share (EPS) of $-0.88, that is a 46.67% lower than previous quarter. Earnings reporting day has a more than usual risk for stock investors as the results disclosed can soar and sink the stock price with exceptionally low volume and not respecting your buy/stop-loss orders. You can find more details about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.hess.com.

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