Insights

The Santos share price is up 27% this year. Is it too late to buy?

Are Santos shares a worthy investment at today’s price?
The post The Santos share price is up 27% this year. Is it too late to buy? appeared first on The Motley Fool Australia. –

The Santos Ltd (ASX: STO) share price has surged in 2022 compared to the S&P/ASX 200 Index (ASX: XJO).

The energy producer’s shares are up 27% in the past six months while the ASX benchmark index has fallen 10%.

Santos slipped into the red today, closing 0.99% lower at $8.02 a share. By comparison, the ASX 200 Index also finished the day down by 1.27% to 6,601 points.

What’s fuelling Santos shares in 2022?

Despite edging lower today, investors have continued to bid up the Santos share price following favourable trading conditions.

The Russian war in Ukraine sparked concerns that heavy-handed sanctions on the Kremlin would drive up energy prices.

And rightly so.

Oil supply has been impacted which has caused the price of Brent Crude to skyrocket above US$120 a barrel.

Before the war, the crucial lifeline of advanced economies was trading at around US$92 a barrel.

Furthermore, inflationary movements, along with potential interest rate hikes, are having a positive effect on energy prices.

It appears this has led to bumper margins for Santos which has prompted some brokers to revise their valuations of the company’s shares.

Is this a buying opportunity?

A number of brokers have recently weighed in on the Santos share price following the company’s latest gas deal.

According to ANZ Share Investing, Macquarie raised its price target by 3% to $10.30 on the energy giant’s shares. Based on the current share price, this implies an upside of 25%.

In addition, the team at Citi added 2.2% to its $8.31 valuation of Santos shares. This is not far off where the company’s shares are trading today.

However, as reported by my Foolish colleague Tristan, Wilson Asset Management (WAM)’s pick of the energy sector is Santos shares.

The fund manager noted the strength of the leadership team in actively managing the company’s extensive portfolio.

In 2022, Santos is hoping to offload between US$2-US$3 billion of assets in de-risking growth projects. This will provide ample firepower on the balance sheet to pursue other investments.

Santos share price summary

While the Santos share price has accelerated this year, this hasn’t been the case over the past 12 months.

Its shares moved mostly in circles after hitting a 52-week low of $5.84 in August. Santos shares are up around 4% for the year.

Santos commands a market capitalisation of roughly $27 billion.

The post The Santos share price is up 27% this year. Is it too late to buy? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Why is the WAM Capital share price down 20% in June?
Despite recent volatility, brokers are predicting big things for the Telstra share price. Here’s why
Falling ASX share prices = bigger dividend yields. Here’s what you need to know
‘Resilient growth profile’: Why this broker is tipping Santos shares to outperform
Why are ASX 200 bank shares having another day to forget?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info