Royal Dutch Shell stock at very low
As a result of the spread of Covid-19 at the beginning of the year, the markets suffered strong downward pressure. Some markets have largely recovered from the slump. On the other hand others have fallen further behind, suffering more from the consequences of what is happening. From a medium-term perspective, we prefer sectors and stocks which have excellent potential not yet expressed in their prices.
For instance, the Oil & Gas sector is one of them. Among the major energy players we believe that Royal Dutch Shell could be an interesting stock. In fact, there are many reasons to believe that it can be a good investment despite the downward pressure of recent months.
Over the years, world energy consumption has steadily increased. This trend will continue according to the International Energy Outlook 2020 published by the U.S. Energy Information Administration. We live in a world that has and will increasingly need energy. For the sector in which it operates, for the solidity of the company and its future potential, in our opinion Shell is currently undervalued, and therefore a BUY in the medium term.