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The market correction and the drop in oil has created a solid buying opportunity for long term investors. It's a good time to start picking up cheap shares and setting up your portfolio for some big gains for 2012. There has been plenty of gloom and doom in the headlines but it is important to remember that oil demand is only going to increase in the future, and recessions don't last forever. If you buy at or near the recent lows, you could end up just about doubling your money if these stocks hit the price targets set by analysts this year. Most analysts set price targets based on where they believe the stock should be trading at in the next 12 months or so. Here are a number of stocks that have price targets that are around double the current stock price:

Stone Energy (NYSE:SGY) is trading at $19.88. Stone is an oil and gas drilling company with projects in the Gulf of Mexico, Appalachia, and Texas. These shares have traded in a range between $14.21 to $35.94 in the last 52 weeks. The 50-day moving average is $24.54 and the 200-day moving average is $27.49. SGY is estimated to earn $3.58 per share in 2011 and $3.64 in 2012. In terms of PE ratios, this appears to be one of the cheapest oil stocks in the market. In July, Dahlman Rose set a $38 price target for SGY shares and Ladenburg Thalmann has a $30 target.

Callon Petroleum (NYSE:CPE) is trading at $3.90. Callon is an oil and gas company with projects in the Gulf of Mexico, Louisiana, and Texas. These shares have traded in a range between $3.02 to $9.36 in the last 52 weeks. The 50-day moving average is $5.06 and the 200-day moving average is $6.59. CPE is estimated to earn 73 cents per share in 2011 and 71 cents in 2012. This stock is deeply undervalued and the company has a solid balance sheet. I believe it won't be long before CPE shares are trading back over $5 per share. Earlier this year, analysts at Howard Weil gave CPE shares a market outperform rating and set an $11 price target.

Exco Resources, Inc. (NYSE:XCO) is trading around $10.70. Exco is an onshore North American oil and natural gas company, and is based in New York. These shares have traded in a range between $9.33 to $21.04 in the last 52 weeks. XCO is estimated to earn about 78 cents per share in 2011. XCO pays a dividend of 16 cents per share which is equivalent to a 1.5% yield. The book value is stated at $7.69. In 2011, Barclays Capital set a price target of $23 per share for XCO.

Halliburton (NYSE:HAL) is trading at $36.26. HAL is one of the leading oil equipment and service companies. The shares have traded in a range between $27.21 to $57.77 in the past 52 weeks. The 50-day moving average is $39.37 and the 200-day moving average is $45.12. Earnings estimates for HAL are at $3.37 per share in 2011, and $4.49 for 2012. The book value is about $12.68. HAL pays a dividend of 36 cents per share which gives a yield of 1%. In July, 2011, UBS set a price target of $68 per share for HAL.

Weatherford International (NYSE:WFT) is trading around $14. Weatherford is a leading provider of equipment and services to the oil and gas industry, based in Switzerland. These shares have traded in a range between $10.85 to $26.25 in the last 52 weeks. The 50-day moving average is $15.46 and the 200-day moving average is $19.62. WFT is estimated to earn about 88 cents per share in 2011 and $1.67 for 2012. Analysts at UBS set a $28 price target for WFT share.

Energy XXI (NASDAQ:EXXI) is trading around $25.60. Energy XXI is a independent oil and gas company, based in Bermuda. These shares have traded in a range between $18.79 to $37.20 in the last 52 weeks. The 50-day moving average is $24.48 and the 200-day moving average is $30.22. EXXI is estimated to earn about $2.54 per share in 2011 and $3.46 in 2012. Analysts see earnings estimates for EXXI jumping to $3.46 in 2012, as new wells come into play and rising energy prices boost profit margins. This stock dropped sharply in the past couple of weeks to about $20, and has rebounded, so I would wait for pullbacks to about $23 or less. Global Hunter Securities has set a $44 price target for EXXI shares.

ATP Oil and Gas Corp. (ATPG) is trading at $9.17. ATPG is an independent oil and gas company, based in Texas. These shares have traded in a range between $5.71 to $21.40 in the last 52 weeks. The 50-day moving average is $10.51 and the 200-day moving is $15.40. Earnings estimates for ATPG are expected to go from a loss in 2011 to a profit of $1.49 per share in 2012. The higher revenues and profits for 2012 are due to higher production coming from oil wells in the Gulf of Mexico. Rodman & Renshaw has set a $22 price target for ATPG shares.

The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.

Source: 7 Oil Stocks Analysts Expect To Double By 2012