On July 28th, 201o I wrote an article named “Five Oil Stocks You Need to Own” Below is a recap of how the stocks have done and how you should continue to trade them. With crude oil prices climbing higher in recent trading sessions, I believe it makes the oil & energy sector as a whole. Below is a recap of the five oil stocks:
Noble (NYSE: NE) Bought on 7/28/2010 at $33.18 now at $44.67, Total Return: 35%
Back in July I was attracted to Noble as the stock had been unfairly hit as a result of the BP Oil Spill making it a very attractive buy due to extensive backlog of contracts, strong balance sheet, and stacks of cash. After yielding a solid return of 35%, I believe Noble can continue to soar past $60.
Transocean (NYSE: RIG) Bought on 7/28/2010 at $43.53 now at $84.01, Total Return: 93%
Back then, RIG was trading at 6.5 times 2010′s earnings which was strong basis for why I believe the stock would soar rapidly, which it did. Like Noble the BP Oil Spill made investors wary but the business as a whole was solid down to the bone. RIG has years and years of backlogged contracts meaning earnings will not slow down and with crude oil rising past $100 a barrel this stock will only continue to excel in many different facets. I originally told everyone to buy in at $43.53 and after nearly doubling (total yield of 93%) the stock has been a great overall investment. I believe it will continue to go higher surpassing $100 in the next year.
Diamond Offshore (NYSE: DO) Bought on 7/28/2010 at $62.12 now at $76.83, Total Return: 24%
Originally DO was trading at 8 times 2010′s earnings. Diamond Offshore wasn’t hit as hard as the rest but still saw shares decline 20% plus due to BP’s Failures. Look for DO to rebound based on upbeat earnings expectations carried by strong sector performance. Trading at around $62, I see this stock rising past $100!
Petrobras (NYSE: PBR)
Bought on 7/28/2010 at $37.06 now at $41.57, Total Return: 13%
Throughout the past five years, PBR has been one of my favorite stocks and top drillers out there. Positioned in Brazil they are one of the world’s largest oil companies. The list goes on about how many upsides this stock has so read my past articles to keep updated. The stock has only yielded 13% but I expect this stock to continue to excel into the mid $60s!
Ensco (NYSE: ESV) Bought on 7/28/2010 at $42.22 now at $55.33, Total Return: 32%
ESV has been unfairly hit by shareholders, as they had nothing to do with the BP oil spill. Back then it was trading at 7 times next year’s earnings so I originally put a price target of $65 on the stock, quite a rise from the $42 price it’s trading at currently. Expect the stock to surpass $70 in the next upcoming year.