The Seven Group Holdings Ltd (ASX: SVW) share price has fallen 2.8% today as the US yield curve inversion, a dovish Fed and concerns over global economic growth fuelled risk-off sentiment.
Where are oil futures pointing?
Oil futures fell from their 4-month highs on Friday afternoon as US-China trade war tensions continue to build and Germany looks increasingly likely to teeter into a recession at any moment.
U.S. West Texas Intermediate (WTI) crude fell 1.5% to US$59.04 per barrel on Friday while Brent crude oil futures sell by a similar amount to US$66.75 per barrel.
Beach's share price is currently trading at a record-high $2.06 per share, just shy of its $2.18 mark it reached last Tuesday. I think at this point Beach may be overvalued at least in the short-run, and I'd be waiting to see further earnings growth before jumping on board with the booming energy company.
What's happening with Beach Energy?
Seven's majority-owned subsidiary, Beach Energy Ltd (ASX: BPT) also saw its share price crash 4.5% lower on the ASX this morning largely due to lower oil prices stemming from the above factors.
As a leading Australian oil and gas exploration company, Beach has seen its share price surge more than 60% in 2019 alone on the back of lofty east coast gas prices at $9-10 per gigajoule (GJ).
A sustained rebound in global oil prices on the back of supply cuts from OPEC has also helped push Beach to be one of the top S&P/ASX200 Index (ASX: XJO) performers this year.
Seven owns a 70% stake in Beach through a private subsidiary, which means the group's share price is in a large part tied to the value of that investment.
Seven, one of Australia's leading engineering and industrials groups, has seen its share price climb 30% this year on strong earnings and the share price gains seen from Beach.
While Seven might not be the perfect fit for everyone's portfolio, it's worth taking a look at this top growth stock which is a leader in a rapidly-growing $22 billion industry.
