ASX Energy stocks are in focus given the war in Iran
Key points:
- Worley (ASX:WOR) viewed as mispriced despite a $16b work pipeline and strong revenue,
- Insider buying at Worley seen as a major positive signal by Roberts,
- Energy transition, AI consulting and oil exposure cited as Worley growth drivers,
- Seek (ASX:SEK) and Xero (ASX:XRO) highlighted as AI-leveraged, “future-proofed” opportunities.
Stuart Roberts from Stocks Down Under sets out a bullish case for Worley (ASX:WOR), arguing the recent share price weakness contrasts with what he views as strong fundamentals and structural tailwinds in global energy. Roberts points to Worley’s $16 billion work pipeline and recent half-year revenue of $6.3 billion, with roughly $400 million in earnings, as indicators of ongoing demand across both hydrocarbons and renewables. He highlights significant insider buying by founder-chair John Grill and other directors after the sell-off as, in his view, a powerful signal of confidence.
Roberts states that Worley’s strategy under CEO Chris Ashton centers on renewables and energy transition projects, while still benefiting when oil prices spike. He notes the company’s consulting arm, including AI-enabled services, as another element he regards as “future-proofing”, alongside what he sees as a solid balance sheet with ample cash and manageable debt.
Beyond Worley, Roberts cites Seek (ASX:SEK) as an example of a business he considers insulated from generic AI due to its proprietary data. He also flags Xero (ASX:XRO) after its deal with Anthropic’s Claude model, arguing that tighter AI integration could reinvigorate product development and, in his view, makes Xero a stock to revisit.
Watch the entire interview on ASX Energy stocks here!
