Chesapeake Energy (CHK) Stock: Is Now The Time To Buy?


Chesapeake Energy Corporation (NYSE: CHK)

Chesapeake Energy Corporation, like most stocks in the oil and energy sector, has been incredibly interesting to follow as of late. With tons of movement, investors are starting to ask, “Is now the time to start getting involved?” Below, we’ll talk about what we’re seeing in pre-market, whether or not now is the time to start looking at CHK, and what we’ll be watching for ahead.

What We’re Seeing From CHK

As mentioned above, Chesapeake Energy has been an incredibly interesting stock to follow as of late. With so much news in the oil and energy sector lately, we’ve seen quite a bit of volatility here. Nonetheless, in pre-market trading, the stock is doing pretty well. Currently (8:49), CHK is trading at $7.40 per share after a gain of 1.23% thus far in the pre-market.

Is Now The Time To Start Considering The Stock?

As with many other stocks in the oil and energy sector, CHK is one that our partners at Trade Ideas have been sending us signals about quite often lately. However, is now the time to start getting involved in the stock? While I can’t answer that on a personal level as I know nothing about your portfolio, comfort with risk, or goals; for many, the answer is likely yes.

At the end of the day, there’s quite a bit going on at the moment that could benefit Chesapeake Energy Corporation investors in a big way. First and foremost, part of the way the company makes money is oil. With OPEC and non-OPEC member nations cutting production recently, oil is running up, which means that CHK will make more money from this product.

Another important factor here is the natural gas side of the CHK equation. This is another side that can be argued to be overwhelmingly positive at the moment. With winter upon us, and the beginning proving to be a harsh one, more natural gas will likely be used to heat homes. This increase in demand will likely lead to increased values, ultimately making more money for Chesapeake Energy Corporation and its investors.

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on CHK. In particular, we’ll be watching conditions as winter continues to roll in and how the conditions change supply and demand data for natural gas overall. We’ll also be keeping a close eye on the oil industry as a whole, as this will play a big role as well. We’ll keep a close eye on the news and bring it to you as it breaks!

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[Image Courtesy of Wikimedia]


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