Gazprom could be an excellent long-term investment

31 mai 2020With the market cap of 65 billion USD, Gazprom continues to be one of the most attractive energy companies in the stock market. The company's revenue increased in 2019 to 123.4 billion USD from 118.01 billion in 2018 and the growth projects will ensure that the numbers will be moving up in the future. It is also important to mention that the net income in 2019 was 19.3 billion USD while the net income in 2018 was 20.8 billion USD. Gazprom reported that 2019 net profit fell 17% Y/Y, the profit was hit by declining gas demand in Europe, its main market, due to the economic fallout from the spread of the Covid-19. Gazprom supplied China with 300 million cubic meters of gas in 2019 and the positive news is that company plans to increase exports to China in 2020.

When we take a look at the one-year chart, we can see that the price dropped from 8.5 USD below 4 USD and started to raise. On this chart, I marked resistance and support levels. Support levels are 5 USD and 4 USD, 6 USD and 7 USD represent the resistance levels. If the price jumps above 6 USD it would be a "BUY" signal and we have the open way to 7 USD. Rising above 7 USD supports the continuation of the bullish trend overview efficiently for the upcoming period. If the price falls, every price in a range from 4.5 USD - 4 USD could be a very good opportunity to invest in Gazprom.

At its current share price, Gazprom could be an excellent long-term investment with a very generous yield and solid growth prospects. When we compare total stockholders' equity of 232 billion USD and the market capitalization of 65 billion USD we can also notice that this stock is very attractive. The majority of the metrics point to this investment being highly attractive.