10 Best Blue Chip Stocks Under $100

5) Shell plc (NYSE:SHEL)

Share Price as of August 16, 2024: US$72.68

Average Upside Potential: 16.95%

Shell plc (NYSE:SHEL) is in the business of exploring and refining petroleum products. It produces and imports fuels, chemicals, and lubricants, and operates service station networks.

With the company’s focus on high-margin projects and renewable energy solutions together with significant bargaining power because of its market-controlling position, Shell plc (NYSE:SHEL) has an economic moat. The company has invested in the development of technology for exploration purposes. Thanks to geophysical data, Shell plc (NYSE:SHEL) developed its methods for oil and gas exploration. Apart from these, the company’s merger with BG Group has provided it with a significant competitive advantage. The merger gave it a stronghold in offshore of Brazil and Australia. As a result, it is in a better position as these countries have rich oil and gas resources.

The company expects to add ~500,000 barrels of oil equivalent per day by 2025 with the help of several growth projects. Shell plc (NYSE:SHEL) has planned investments ranging between $10 billion – $15 billion in low-carbon initiatives between 2023 and 2025. The company is bullish on the LNG market and demonstrated stable performance in marketing and liquids trading.

It has strengthened its leading LNG portfolio and made healthy progress across its Capital Markets Day 2023 financial targets, which include $1.7 billion of structural cost reductions since 2022.

TD Securities increased its price target on shares of Shell plc (NYSE:SHEL) from $74.00 to $81.00 and gave a “Buy” rating on 3rd May. A total of 50 hedge funds out of the 920 tracked by Insider Monkey held stakes in Shell plc (NYSE:SHEL) as of the end of the first quarter.