We recently published a list of Why These Energy Stocks Are Gaining This Week. In this article, we are going to take a look at where CVR Energy, Inc. (NYSE:CVI) stands against other energy stocks that are gaining this week.
The energy sector has outperformed the broader market so far this year, with gains of 2.7% against the general market’s surge of 1.48%. This comes after a disappointing 2024 when the energy sector lagged significantly behind gains of 25% by the wider market.
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As the world gets hungry for more and more energy, the International Energy Agency has forecasted the world’s electricity consumption to rise at its fastest pace in recent years, growing at close to 4% annually through 2027. The uptick can be mainly attributed to a surge in industrial production, increased demand for air conditioning, accelerating electrification, primarily by the transport sector, and the rapid expansion of data centers.
Electricity demand in the United States, the second-largest consumer in the world after China, is to grow at an average annual rate of about 2% over the period 2025-2027, driven by the strong demand growth from the data center sector.
Other sectors, including natural gas, also stand to benefit tremendously from the ongoing AI boom and the accompanying data centers, as several dozen new gas-fired power plants are expected to be built in the US in the next few years. According to data from S&P Global Commodity Insights, if even a quarter of the projected data center load is supplied by gas-fired generation, this would translate to a 2% increase in total US gas demand in 2040, providing some much-needed respite to a sector that has faced a series of challenges over the last year.
Methodology
To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between February 14 to February 24, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A tanker filled with crude oil slowly unloading its cargo onto a container ship.
CVR Energy, Inc. (NYSE:CVI)
Share Price Gains Between Feb. 14 – Feb. 24: 13.52%
CVR Energy, Inc. (NYSE:CVI), together with its subsidiaries, engages in the petroleum refining and marketing business, as well as nitrogen fertilizer manufacturing activities in the United States.
CVR Energy, Inc. (NYSE:CVI) beat Q4 2024 estimates, posting revenue of $.195 billion in Q4 2024, down 11.58% YoY but still above analysts’ estimates by over $101 million. The company’s quarterly loss of $0.13 per share was also better than market expectations of a loss of $0.61 per share. CVR also reported an operating cash flow of $98 million during the quarter and managed to enhance its liquidity by $408 million through a Term Loan and the sale of its 50% interest in Midway Pipeline. The company also declared a fourth-quarter 2024 cash distribution of $1.75 per common unit, which will be paid on March 10, 2025.
For the full year 2025, CVR Energy, Inc. (NYSE:CVI) estimates total consolidated capital spending to increase to approximately $165-205 million and turnaround spending to surge in the range of $170-185 million.
Overall, CVI ranks 2nd on our list of energy stocks that are gaining this week. While we acknowledge the potential for CVI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.