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The best performing stocks in the market are usually the highest growing stocks or the stocks with the highest expected growth rates. This doesn’t mean that one should be invested in growth stocks and stay away from the value stocks at all times. Historically value stocks managed to beat the growth stocks hand over fist. The reason is simple. Value stocks are beaten down stocks with very low or negative growth expectations. Not surprisingly it is easier for these stocks to beat the expectations on the average. On the other hand, everybody is extremely bullish about growth stocks and expect them to have higher growth rates in the future. Their stock prices also reflect this fact. Not surprisingly, it is more difficult for these stocks to beat these challenging expectations.

We ranked energy companies based on their expected five-year growth rates. The data source for Wall Street Analysts’ projections is Thomson Financial. Contrarian investors should look into the stocks that are at the top of the table.

Company name

Symbol

Market Cap

Forward PE

Expected 5-Year Growth Rate

ConocoPhillips

COP

105.42B

9.6

(1.8)

Eni SpA

E

82.19B

7.79

2.4

Plains All American Pipeline, LP

PAA

8.74B

17.04

2.6

Enbridge Energy Partners, LP

EEP

7.98B

19.96

2.8

TOTAL SA

TOT

123.07B

7.95

2.8

Statoil ASA

STO

82.71B

9.52

3.0

Canadian Natural Resource

CNQ

50.39B

12.83

3.5

Noble Corporation

NE

11.00B

11.5

3.7

Talisman Energy Inc. (USA)

TLM

23.86B

17.48

4.3

BP plc

BP

135.50B

6.87

4.3

Magellan Midstream Partners, LP

MMP

6.55B

17.11

4.4

Apache Corporation

APA

43.55B

9.72

4.7

Pioneer Natural Resources

PXD

11.15B

20.85

5.6

Valero Energy Corporation

VLO

15.61B

8.78

5.7

ENSCO PLC

ESV

7.79B

11.06

6.6

Massey Energy Company

MEE

6.48B

11.97

6.7

Buckeye Partners, LP

BPL

5.07B

16.82

7.4

PetroChina Company Limited

PTR

243.97B

9.92

7.9

Hess Corp.

HES

27.11B

10.35

8.0

Chevron Corporation

CVX

199.76B

8.62

8.2

Marathon Oil Corporation

MRO

35.07B

8.97

8.3

Diamond Offshore Drilling, Inc.

DO

9.87B

13.35

8.6

Occidental Petroleum

OXY

77.98B

11.23

8.6

Enbridge Inc. (USA)

ENB

22.58B

19.28

8.6

EOG Resources, Inc.

EOG

27.81B

18.49

8.7

Anadarko Petroleum

APC

36.89B

22.57

8.7

Exxon Mobil Corporation

XOM

393.27B

10.05

9.3

Noble Energy, Inc.

NBL

15.90B

15.12

9.5

Chesapeake Energy Corporation

CHK

22.79B

11.22

9.9

Murphy Oil Corporation

MUR

13.45B

10.09

10.2

Helmerich & Payne, Inc.

HP

6.44B

14.36

10.3

National-Oilwell Varco, Inc.

NOV

32.70B

15.03

10.7

Sunoco, Inc.

SUN

5.13B

17.33

12.0

EQT Corporation

EQT

6.80B

19.25

12.3

Nexen Inc. (USA)

NXY

13.14B

8.96

12.8

Devon Energy Corporation

DVN

36.57B

11.7

12.9

EnCana Corporation (USA)

ECA

24.39B

29.87

13.9

Williams Companies, Inc.

WMB

17.38B

18.62

14.2

Walter Energy, Inc.

WLT

6.06B

8.91

14.4

China Petroleum & Chemical

SNP

84.66B

6.77

15.7

CONSOL Energy Inc.

CNX

12.08B

11.56

16.1

Halliburton Company

HAL

40.07B

12.99

16.2

Schlumberger Limited.

SLB

113.10B

17.04

16.7

CNOOC Limited

CEO

97.35B

9.49

17.3

Imperial Oil Limited (USA)

IMO

44.00B

17.43

17.6

Peabody Energy Corporation

BTU

18.89B

10.58

17.6

Range Resources Corp.

RRC

8.52B

35.4

18.2

Cimarex Energy Co.

XEC

8.91B

13.08

19.8

Baker Hughes Incorporated

BHI

29.28B

14.82

20.9

Suncor Energy Inc. (USA)

SU

68.78B

14.86

21.5

Arch Coal, Inc.

ACI

5.55B

8.45

46.9


Bill Miller is a contrarian investor who is invested in ConocoPhilips. Warren Buffett also has COP in his portfolio but he isn't very enthusiastic about it.
One of the stocks hedge funds are extremely bullish about is SLB. Stephen Mandel's Lone Pine Capital bought Schlumberger in the most recent fourth quarter and made more than 14% from his nearly $600 million bet. T. Boone Pickens also has SLB in his portfolio.

Williams Co (WMB) is one of Steven Cohen’s favorite stocks in 2011. There are 74 other hedge fund managers, including Daniel Loeb, who agree with Steven Cohen. They spent $1 billion during the fourth quarter to buy WMB shares. Now, hedge funds own 14% of outstanding shares.

Finally another out of favor energy stock that hedge funds heavily invested during the past few months is BP. T. Boone Pickens, John Griffin, Passport Capital's John Burbank, star hedge fund manager David Einhorn, and Whitney Tilson are among the hedge fund managers who are extremely bullish about BP.

Source: Top Energy Companies With Highest Upside Potential