Iran Conflict Drives Oil Prices Soaring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Should l Buy INTC?
Source: Yahoo Finance
- Oil Price Surge: The ongoing conflict with Iran has caused Brent crude prices to soar from $60 to over $100, a more than 70% increase, which will directly enhance the profitability and shareholder returns of oil companies.
- ConocoPhillips Cash Flow: ConocoPhillips expects to generate sufficient cash flow to fund its capital program even at mid-$40 oil prices, having generated $7.3 billion in free cash flow last year, with an additional $1 billion expected this year due to lower costs, further boosting shareholder returns.
- EOG Resources Efficiency: EOG Resources boasts an average after-tax return exceeding 100% at $55 oil, and with a 7% reduction in well costs and a 4% cut in operating expenses, it anticipates generating $10 billion in cumulative free cash flow over the next three years, enhancing shareholder returns.
- Diamondback Energy's Competitive Edge: With a breakeven level of only $30 per barrel, Diamondback Energy expects to generate over $3.1 billion in free cash flow at $50 oil, planning to retain half to strengthen its balance sheet while returning the other half to shareholders through dividends and buybacks.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 44.100
Low
20.00
Averages
39.30
High
52.00
Current: 44.100
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Custom Chip Advantage: The TPU developed in collaboration with Broadcom provides Alphabet with significant cost advantages in AI training and inference, allowing for lower operational costs that further solidify its market position.
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See More
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- Normal Market Volatility: Despite recent heightened volatility due to the Iran conflict, stock market fluctuations are historically common, suggesting that investors, especially those not yet retired, need not panic excessively.
- Adjust Withdrawal Strategies: For retirees, it is crucial to adjust withdrawal strategies during unfavorable market conditions, such as temporarily cutting spending or selling non-depreciated assets to safeguard retirement savings.
- Maintain Portfolio Stability: The best strategy during market downturns is to keep the investment portfolio intact, as losses are only locked in when stocks are sold at low points, and long-term holding typically allows for recovery.
- Capitalize on Market Dips: Investors should continue to fund their IRA or 401(k) accounts, as buying stocks during downturns can be a wise move, potentially leading to higher returns when the market rebounds.
See More
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- Significant Stock Decline: Micron Technology's shares fell approximately 19.5% over the past five trading days, dropping over 23.5% from a recent high of $471.34 earlier this month, indicating investor concerns about the sustainability of memory demand that could impact future profitability.
- Increased Capital Expenditure Plans: The company plans to raise capital expenditures to over $25 billion in fiscal 2026, with a significant portion allocated for future memory capacity expansion, despite ongoing worries about the normalization of memory prices in the market.
- Supply Tightness Expectations: Micron's management highlighted in a recent earnings call that some customers are receiving only 50% to 66% of their medium-term memory needs, and this tight supply-demand condition is expected to persist beyond 2026, potentially affecting the company's long-term profitability.
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See More
