All Entries Tagged With: "top oil stocks"
Recap of How Our Oil Stock Picks Have Fared in the Past Year
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%
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.
Please leave me a comment below letting me know what you think or feel free to send any comments to my Twitter. Also remember to sign up for Stocks on Wall Street’s Monthly Newsletter
Five More Oil Stocks You Need To Own
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.
Please leave me a comment below letting me know what you think or feel free to send any comments to my Twitter. Also remember to sign up for Stocks on Wall Street’s Monthly Newsletter.
Five Oil Stocks You Need to Own
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.
Please leave me a comment below letting me know what you think or feel free to send any comments to my Twitter. Also remember to sign up for Stocks on Wall Street’s Monthly Newsletter.
Oil Consumption to Rise: Invest in Oil
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.
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 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 Surges Higher: Still Good Investment
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)
