Stocks on Wall Street » Oil Stocks

Top Oil Stock to Invest In

James — Tue, 30 Nov 2010 08:00:02 +0000

In my opinion, the oil stocks are still heavily undervalued. Here I am now to talk about my favorite picks and why I like them. Read below:

Top Oil Stocks

ExxonMobil (XOM) - Expect XOM to see lots of new business in the coming year. I think this is a good long-term anchor to any portfolio.

Chevron (CVX) - Good overall play as they have very low exposure to refining while holding a stellar exploration portfolio. With rising oil prices this stock is a no brainer. Chevron also posses a solid 4% dividend yield and is currently trading at around eight times earnings.

ConocoPhillips (COP) – Holds a strong array of natural gas positions which could be the future of energy after the recent series of events. Adding to this they are strong globally and posses many valuable assets that will strengthen the companies prospects.

PetroBras (PBR) – Love this stock however it has been the worst performing stock in Brail throughout the first half of the year due to capital problems and the BP Oil Spill. I feel this overhang has kept the stock low which presents a great buying opportunity as PBR continues to be under-valued when matched up against it’s peers. My gut feeling is once these few issues are washed away this stock will rise.

Suncor (SU) - Refineries and Oil Drillers such as Suncor should succeed as many have been hit hard this year unfairly due to the BP crisis. I think this stock will be trading at around $40 a year from now supported by a solid dividend makes it an attractive investment.

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Five More Oil Stocks You Need To Own

James — Thu, 29 Jul 2010 03:00:35 +0000

Recapping on yesterdays post, here are five more oil stock you need to own.

ConocoPhillips (COP) holds a strong array of natural gas positions, which could be the future of energy after the recent series of events. Adding to this they are strong globally and posses many valuable assets that will strengthen the companies prospects.

Chevron (CVX) is a good overall play as they have very low exposure to refining while holding a stellar exploration portfolio. With rising oil prices this stock is a no brainer. Chevron also posses a solid 4% dividend yield and is currently trading at around eight times earnings.

Total SA (TOT) is an amazing stock to own, high global exposure in strategic locations including the recent addition of moving into the rich African nation. Moving on they have increased their exposure to natural gas in both France and Denmark. With a solid 5% dividend and the belief that the market has bottomed out makes this is a great position to own. I know none of us are sure of when the market will begin to rebound but when it does this is a stock not to miss out on.

Petrohawk Energy (HK) known for oil and natural gas exploration throughout the U.S. In the most recent quarter, HK’s revenue surged over 67%. I believe this stock is a strong bet due to attractive book value and strong analyst coverage. I could see this stock rising to $35 in the near future.

Southwestern Energy (SWN) again explores natural gas and crude oil throughout the U.S. Revenue has grown 40% annually while the stock has returned over 20% a year during that span. With strong cash flow, book value, and projected earnings I expect them to continue to soar.

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Five Oil Stocks You Need to Own

James — Wed, 28 Jul 2010 07:00:56 +0000

In recent trading sessions oil prices have slowly climbed higher, I believe this trend will continue. Here are five oil stocks I like:

Noble (NE): Another stock unfairly hit is a very attractive buy due to extensive backlog of contracts, strong balance sheet, and stacks of cash. Trading at $33 I see it going to $53 in a year.

Transocean (RIG): Trading at 6.5 times this year’s earnings this stock will soar rapidly once it takes off. Don’t be worried by potential bans as the company has years and years of backlogged contracts meaning earnings will not slow down. In a year I see this stock trading at $100, quite a steal since it’s a BUY at $47 right now.

Diamond Offshore (DO): Trading at 8 times this year’s earnings this stock wasn’t hit as hard as the rest but still saw shares decline 20% plus. Look for it to rebound based on upbeat earnings expectations carried by strong sector performance. Trading at around $62, I see this stock rising to $95 in a year.

Petrobras (PBR): PBR is one of my favorite stocks and top drillers. 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. Anyways trading at $37, expect this stock to be back to mid $60s.

Ensco (ESV): This stock has been unfairly hit by shareholders, as it had nothing to do with the spill. Trading at 7 times next year’s earnings I put a price target of $65 on the stock, quite a rise from the $42 price it’s trading at currently.

Top Large Cap Oil Stocks

James — Fri, 25 Jun 2010 03:00:36 +0000

Yesterday I talked about the strength in the oil industry and how it’s completely undervalued and been unfairly hit hard by the recent struggles of BP. Here I am now to talk about myfavorite picks and why I like them. Read below:

Top Oil Stocks

ExxonMobil (XOM) - Expect XOM to see lots of new business now with BP’s problems. I think this is a good long-term anchor to any portfolio.

Suncor (SU) - Refineries and Oil Drillers such as Suncor should succeed as many have been hit hard unfairly due to the BP crisis. I think this stock will be trading at around $40 a year from now supported by a solid dividend makes it an attractive investment.

Oil Stocks at Historic Lows Making them Screaming Buys

James — Thu, 24 Jun 2010 07:00:35 +0000

Right now I think the energy sector; most specifically oil sector are screaming buys. Big integrated oil stocks are at historic lows currently compared to their multiples. The sector is at 10, while usually it trades at 14-14½. Historic lows make this a good time to anchor your portfolio with strong array of oil stocks. I like PetroBras (PBR), Chevron (CVX), ConocoPhillips (COP), Exxon (XOM), and Suncor (SU) to name a few. These oil stocks are all cheap, very cheap and anyone who sells them this low is crazy. The thing you should take into account is the market will always trade like the market. Long-term however blue chips stocks in strong sectors continue to rise. So if your looking to structure a long-term portfolio look at undervalued energy plays as a great anchor for long-term success.

Oil Consumption to Rise: Invest in Oil

James — Mon, 22 Feb 2010 06:44:13 +0000

With crude oil climbing back over $80 a barrel in the past several days many investors are speculating where it will head next. I for one have always been a strong promoter of oil stocks and am not going to stop now. Expect crude oil to continue to rise. Why? Well recent OPEC reports stated that energy demand will continue to increase throughout 2010. Global oil consumption could possibly rise to as much as 1.4 millions barrels a day. Crude oil prices will rely heavily on the global economic situation however I am optimistic that we will continue to see improvements within the economy. We have yet to see the surge in oil prices yet I think its coming soon. I believe oil is undervalued and consumption will only continue to rise. I expect demand to greatly increase in BRIC countries around the world. I speculate we will see oil rise in the coming weeks being supported by strong economic data. I think this surge will help lead to higher oil prices throughout 2010. Main point, invest in oil stocks. My favorite picks and why I like them. Read below:

Top Oil Stocks

ExxonMobil (XOM) - Expect XOM to see lots of new business now with BP’s problems. I think this is a good long-term anchor to any portfolio.

Oil Surges Higher: Still Good Investment

James — Sun, 18 Oct 2009 07:01:54 +0000

Expect Crude Oil to continue to rally all the way to the end of 2009. Oil is now trading at around $78 a barrel after the recent surge. So why to I the oil rally will continue?

5 Reasons Oil Will Succeed

1. Oil is undervalued, futures continue to rise proving prosperous times

2. OPEC expects Global Oil Consumption to increase 500,000 barrels a day in 2010

3. Per day Oil Consumption to spring back to 940,000 barrels a day and maybe even as high as 1.4 million barrels a day if demand rebounds

4. Analysts predict higher oil prices will be fueled by a stronger economy and higher global demand in BRIC countries

5. Energy forecasters have regularly made assumptions throughout the past year as the fast-changing economic landscape altered consumption patterns and will send crude oil price high above $145 a barrel

Why I like oil as a long-term investment?

I am bullish about the prospective of the industry leading into 2010, as U.S. consumption is expected to rebound somewhat and consumption in emerging markets is supposed to rebound substantially. While most U.S. based Oil Companies expect profit drops of around 65% in 2009, I see it rebounding over 65% in 2010 and higher based upon higher projected pricing due to improved long-term economic outlook and new project start ups that have helped boost the upstream in the gas and oil volume. The main determinant to the oil recovery is the pace of how our economy continues to rebound. The stronger our economy becomes, the stronger the oil markets become. One large effect by the stagnate economy is the how the global credit crunch is making it hard for many companies to expand. I feel that our economy is slowly stabilizing and as a result the oil boom will start to take off in 2010.

What Oil Stocks to Buy?

1. Chevron (CVX)

2.ConocoPhillips (COP)

3. Exxon Mobile (XOM)

4. Noble Corporation (NE)

5. Total SA (TOT)

6. Transocean (RIG)

7. PetroChina (PTR)

8. Petrobras (PBR)

Drill Baby, Drill: Invest in Oil

James — Tue, 22 Sep 2009 07:01:44 +0000

Finally today Crude oil creped up after a dismal past week. This coming after a stagnate few weeks where the energy sector, specifically crude oil has done relatively nothing. For those of you not invested in oil, I think it is time and this is why. Despite the most recent falloff oil is very undervalued and oil futures continue to rise proving that we have prosperous times ahead of us. Adding to this OPEC continues to expect global oil consumption to increase a modest 500,000 barrels a day in 2010, after falling the previous two years. Also, Goldman Sachs also predicts similar results saying higher oil prices will be fueled by a stronger economy and higher global demand especially in China, India, the Middle East, and Latin America. World oil demand is just following the same path the current world economy is taking by settling down after struggling through the long hauls

Why I like oil as a long-term investment? Energy forecasters have regularly made assumptions throughout the past year as the fast-changing economic landscape altered consumption patterns and will send crude oil price high above $145 a barrel. This is very optimistic yet I do believe solid gains will come from now and year-end. More prospective good news came last week by the U.S. Energy Information Administration and the International Energy Agency who overlook and analyze oil prices in the global landscape. They expect oil demand to spring back with a resurgence of about 940,000 barrels a day in 2010 and maybe even as high as a 1.4 million barrel-a-day demand rebound. Reading last months OPEC reports, they stated that the worst was over in the oil markets. They are very bullish about the prospective of the industry leading into 2010, as U.S. consumption is expected to rebound somewhat and consumption in emerging markets is supposed to rebound substantially. While most U.S. based Oil Companies expect profit drops of around 65% in 2009, I see it rebounding over 65% in 2010 and higher based upon higher projected pricing due to improved long-term economic outlook and new project start ups that have helped boost the upstream in the gas and oil volume. The main determinant to the oil recovery is the pace of how our economy continues to rebound. The stronger our economy becomes, the stronger the oil markets become. One large effect by the stagnate economy is the how the global credit crunch is making it hard for many companies to expand. One other concern many people have is the growing concerns in whether Iran’s unrest will cause a superficial spike in oil. This is not a worry at all as Iran needs the oil revenue in order to allow its economy to survive, for more reassurances, read my recent article Will Iran’s turmoil bring higher oil prices?

Moving on, many of you are wondering where to invest within oil stocks? Strong oil play are Chevron (CVX) which will continue to grow due to its acquisition in 2005 of Unocal and its advanced development of successful worldwide projects. ConocoPhillips (COP) who is holding a strong array of oil positions boosting its market-share, Exxon Mobile (XOM) who continues to dominate the sector by its shear size, Noble Corporation (NE) who’s revenue stream is safe and strong due to its large amount of contract backlogs, Total SA (TOT) who’s strong portfolio bodes well for the future and Transocean (RIG) who is a solid deep-water oil play. I also remain bullish on global oil corporations like China’s Petrochina (PTR) and Brazil’s Petrobras (PBR). Both are plays on oil’s long-term secular growth and two of the world’s three most dynamic markets, India being the other emerging global dynamo.

Despite recent Slowdown, I Remain Bullish on Oil

James — Wed, 15 Jul 2009 07:01:46 +0000

Crude oil fell again yesterday on Wall Street, leading to a stagnate eight weeks for the sector as prices continue to fall. Whether or not you are invested within Oil maybe you should be as recent indicators prove the oil industry to be very bullish now long-term. Despite the drop in oil prices, oil futures continue to rise proving that prosperous times are ahead of us. More prospective news came along yesterday when OPEC reported that they expect global oil consumption to grow a modest 500,000 barrels a day in 2010, after fall the previous two years. Goldman Sachs also predicts similar results saying higher oil prices will be fueled by a stronger economy and higher global demand especially in China, India, the Middle East, and Latin America. In OPEC’s monthly market update, they stated that oil would fall barely to around 1.6 million barrels a day. This results in only a small decline around 83.8 less million barrels a day as the world economy stagnates. Though the good news overall is that these recent projections are less severe than we had projected last month. World oil demand is just following the same path the current world economy is taking by settling down after struggling through the long hauls.

Top Oil Stocks Out There

James — Mon, 02 Mar 2009 12:06:51 +0000

With Crude Oil currently on the rise many analysts are projecting that the volatility levels could fluctuate in the next few weeks. Some even say that $100 dollar a barrel oil is a very likely target to end this year. Oil is a basic commodity, which everyone knows will rise. Basic supply and demand tells us that there is not enough oil out there to satisfy the needs and wants of just China and America alone not to talk about the rest of the world. Oil is not a smart long-term investment (Holding for longer than 5 years) though currently there is a lot of money to be made in the Industry. With such a steep decline in Crude prices dropping from $144 a barrel to $30 in less than 6 months we could see the sides reversed. The world is still dependent on Oil and that is not going to change in the next few years. Yes Obama has great plans, which I fully support however those are still years away before becoming effective solutions. After doing research on the Oil and Gas industry I see great potential in 2009 with Crude prices jumping back up to over $100. As a result I want to help you get a piece of the action so I have created a short-list of companies, which are worth following. First and foremost Andarko (APC), the largest Natural Gas supplier should have a big 2009 with roaring profits due to the higher markup of gas prices. Next Exxon Mobile (XOM) and Valero (VLO), which continue to put up great profits. Finally more of an international perspective Petroleo Brasileiro SA (PBR) the large Brazilian Petroleum producer. These are all companies that should benefit the most from a rise in oil and natural gas prices as the global economy recovers. Overall long-term oil will struggle but within the next four years its well worth holding and should continue to see great revenue/income.

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