Is the Santos share price ‘starting to resume its uptrend’?

The Santos Ltd (ASX: STO) share price lifted today, but could it be on a trend to go higher in the future?

Santos shares rose 1.56% today to close at $7.83. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) jumped 1.99% today.

Let’s take a look at the outlook for Santos.

Is Santos a buy?

The Santos share price has soared 24% in the year to date. Santos shares hit a high of $8.76 in June before pulling back to the current share price.

Fairmont Equities managing director Michael Gable recommends the Santos share price as a “buy”.

In comments published on The Bull, Gable said he believes Santos will continue to benefit from higher energy prices “for some time”.

He added:

The share price is down from its June peak in response to a short-term retreat in the crude oil price.

However, this presents a buying opportunity, as the share price has recently firmed and is starting to resume its uptrend.

Santos is a major oil and gas producer. The company reported a 230% boost in statutory net profit after tax in FY22 to $1.167 billion.

Santos CEO Kevin Gallagher said: “Demand for our products has remained strong in both Australia and internationally, due to increased demand and shortages of supply from producing nations due to global underinvestment in new supply”.

Santos share price snapshot

Santos shares have soared 28% in the past year. In the last month, Santos shares have risen 4%, while they have lifted 1.56% in the past week.

Santos has a market capitalisation of more than $26 billion based on the current share price.

The post Is the Santos share price ‘starting to resume its uptrend’? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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