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The market correction 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. Another factor that will keep a floor under the price of oil is all the printing of money by many debt-ridden governments. With many oil stocks now trading near the 52 week 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:

Tesco Corporation (NASDAQ:TESO) is trading at $11.54. Tesco provides drilling products and services to oil and gas companies. These shares have traded in a range between $10.01 to $23.39 in the last 52 weeks. The 50-day moving average is $13.58 and the 200-day moving average is $17.19. TESO is estimated to earn 59 cents per share in 2011 and $1.05 in 2012. The book value is $10.44 per share. In terms of book value and balance sheet, this appears to be one of the cheaper oil stocks in the market. Tesco has about $50 million in cash on the balance sheet and no long-term debt. Because of this, I think any pullbacks to about $10 are particularly attractive. Dahlman Rose has a buy rating with a $18 price target and Global Hunter Securities has a $19 price target, see that here.

Nabors Industries Ltd. (NYSE:NBR) is trading around $15.98. Nabors is a leading land-based drilling contractor and also provides construction, maintenance and other services. These shares have traded in a range between $11.05 to $32.47 in the last 52 weeks. The 50-day moving average is $16.43 and the 200-day moving average is $23.23. NBR is estimated to earn $1.46 per share in 2011, and $2.26 for 2012. The book value is stated at $19.59. This stock recently dropped to the low $11 range, and this would be an exceptional buying opportunity for long and short-term investors. At the height of the financial crisis a couple of years ago, Nabors traded for about $10 per share, so that would probably be a solid floor for this stock. Dahlman Rose recently upgraded NBR shares to a buy and set a $30 price target, see that here.

Comstock Resources, Inc. (NYSE:CRK) is trading at $14.49. Comstock is a oil and gas company with projects located in Texas, Louisiana, New Mexico, Kentucky, and other areas. This company owns interests in about 1,589 producing wells. These shares have traded in a range between $13.69 to $33.63 in the last 52 weeks. The 50-day moving average is $17.22 and the 200-day moving average is $24.75. CRK is estimated to lose 23 cents per share in 2011 and earn 54 cents in 2012. The book value is $22.31 per share. Other stocks listed here seem to be a better value, so I would only buy this on further dips. Global Hunter Securities has a buy rating with a $40 price target on CRK shares, see that here.

Forest Oil Corp. (NYSE:FST) is trading at $13.30. Forest is a oil and gas company that holds interests in some high potential areas, including the Eagle Ford Shale, Louisiana, Alberta and others. These shares have a 52 week range of $8.88 and $40.23. The 50-day moving average is $13.76, and the 200-day moving average is $25.09, so the stock is trading well below recent support levels. Forest is estimated to earn $1.03 per share in 2011, and $1.21 for 2012. Book value is stated at $10.50. This stock looks cheap, especially on any further dips. Barclays Capital has set a $31 price target and Canaccord Genuity has a $22 price target for FST shares, see that here.

Penn West Petroleum Ltd. (NYSE:PWE) is trading at $16.05. PennWest is a oil and gas company with projects located in Saskatchewan, Alberta, British Columbia, and other areas. These shares have traded in a range between $12.45 to $28.98 in the last 52 weeks. The 50-day moving average is $16.65 and the 200-day moving average is $21.77. PWE is estimated to earn $1.37 per share in 2011 and 60 cents in 2012. The book value is $18.76 per share. PWE pays a dividend of $1.04 per share which yields 6%. RBC Capital Markets has a outperform rating with a $28 price target on Penn West shares, see that here.

HollyFrontier Corporation (NYSE:HFC) is trading around $21.74. HollyFrontier is a petroleum refining company, based in Texas. These shares have traded in a range between $17.22 to $38.90 in the last 52 weeks. The 50-day moving average is $29.38 and the 200-day moving average is $31.03. HFC is estimated to earn about $6.98 per share in 2011, and $4.93 for 2012. This company pays a dividend of 40 cents per share which yields about 1.8%. HFC shares have dropped recently, so anywhere near the $22 level, or below, looks like a very good buying opportunity. Deutsche Bank has set a $40 price target, see that here.

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: 6 Undervalued Oil Stocks That Analysts Expect To Double In 2012