Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

3 Energy Stocks With The Magic Combination

|Includes:ESV, Marathon Petroleum Corp. (MPC), TGA

Peak Price Peak Oil

Special Report: Picking the Right Peak

Crude Oil Refining

March 17, 2013 - 3 Energy Stocks With The Magic Combination by Zacks Investment Research

The stock rally we've seen over the last six months has lifted all boats. It hasn't been a stock pickers market. It's the type of market where no matter what you've bought you've made money.

If you're a value investor, you're suddenly wondering, "where's the good value stocks?" Many of the previously "cheap" stocks aren't so cheap anymore. Many sectors have had big run-ups.

But if you dig deep, value stocks are still out there.

Not only that, there are value stocks that are expected to grow earnings by the double digits this year. That's the magic combination for investors: value AND growth.

How Do We Find Stocks With The Magic Combination?

In a stock market where the rally is lifting all boats, we have to look in sectors that remain out of favor. Yes, there still ARE some areas that haven't performed quite as well as others.

One area investors have turned their backs on is energy.

Outside of the refiners, which have soared over the past year due to record high crack spreads which have pushed up earnings and shareholder payouts, much of the rest of the energy sector has been left on the sidelines. Some companies, like the integrated big oil companies, for instance, are lagging the overall markets. Many of the exploration companies have also yet to break out. Ditto with the oil services and equipment companies.

But as Wall Street shuns energy, that creates an opportunity for investors. A lot of energy companies are trading with low P/Es. Additionally, there are a select few that are also expected to grow earnings by the double digits in 2013. These companies are being lumped in with all the other energy companies in the "bad" category.

Using the Zacks Rank, I also looked for energy plays that had the magic combination of value AND growth. That means stocks with forward P/Es under 10 and double digit earnings growth expected in 2013. They DO exist.

3 Energy Stocks With The Magic Combination

Marathon Petroleum (NYSE:MPC)

Marathon Petroleum was spun off from Marathon Oil in July 2011. It owns 7 refineries in the Gulf Coast and Midwest and distributes refined products.

Most of the refining stocks rallied big in 2012 and have continued that rally again into 2013. But the analysts still like Marathon mainly due to its position with both Midwest and Gulf Coast refineries. It's going to be able to play the North American crude dynamics, instead of the WTI crude spread that many other refiners have been tied to. It has been cashing in on discounted heavy Canadian crudes.

The Magic Combination

Forward P/E = 8

2013 Expected Earnings Growth = 11.2%

PEG ratio = 1.1

Zacks Rank #1 (Strong Buy)

Transglobe Energy Corporation (NASDAQ:TGA)

Transglobe Energy is a Canadian exploration and production company with interesting ins Egypt and Yemen. It has 9 international blocks with active exploration and development drilling already underway.

In Egypt it has a 50-100% operated and non-operated interest in 5 concessions in Egypt. In Yemen, it has a 13-25% working interest in several blocks.

For exploration companies, it's all about getting it out of the ground. Production grew by 44% in 2012 to 17,496 barrels of oil per day ("Bopd") from 12,132 Bopd.

Transglobe is bullish on 2013 with production expected to rise another 28% to a range of 21,000 to 24,000 Bopd.

The Magic Combination

Forward P/E = 6.4

2013 Expected Earnings Growth = 20.5%

PEG ratio = 0.2

Zacks Rank #2 (Buy)

Ensco plc (NYSE:ESV)

Ensco operates 76 offshore rigs mainly in the Gulf of Mexico and the North Sea. Headquartered in London, its fleet includes 7 ultra-deepwater drillships, 13 semisubmersibles, 7 moored semisubmersibles and 49 jackups.

Offshore drilling has been hot. Ensco said it received 60 inquiries for jackups and floaters in the fourth quarter but it couldn't bid on 25% of the business due to lack of rig availability.

Analysts, and the company, are optimistic about 2013. Ensco just raised its dividend by 33% to $0.50 per quarter. That's a yield of 3.5%.

The Magic Combination

Forward P/E = 8.5

2013 Expected Earnings Growth = 24%

PEG ratio = 0.3

Zacks Rank #3 (Hold)

Elliott Wave Oil Forecasts

Elliott Wave Energy Futures Forecasts



WorldCupAdvisor - Trade with the Pros
Minimum Opening Deposit: USD 15,000.00

Talented professionals from around the world display their live futures and forex trading accounts in real time on WCA and allow subscribers to follow their activity. You can follow the trading of any WCA lead account automatically in your own account with World Cup AutoTrade service.

Gold Oil Stock ETF Alerts

Oil and Gold Newsletter
USA & Canadian Gold ETF Trading Strategies and Signals

High probability stock, index, sector, commodity, bond, & currency ETF trade alerts. US trading signals, Gold & Silver - GLD, SLV, Gold Stocks - GDX, Crude Oil - USO, Natural Gas - UNG, Index Trading - DIA, SPY, Bonds, Foriegn Investments US & Canadian Stocks. Canadian trading signals, Gold & Silver - CEF.A, Gold Stocks - HGU, HGD, Crude Oil - HOU, HOD, Natural Gas - HNU, HND, Index Trading - XIU, HXU, HXD, Bonds, Foriegn Investments, US & Canadian Stocks.

Oil and Gas Investor

Oil and Gas Investing
Oil and Gas Investor is your complete source for information about the financial world of oil and gas. An interactive, searchable version of Hart Energy Publishing's Oil and Gas Investor Magazine, this site also provides you with online content from OGI This Week and A&D Watch. In addition to providing daily analysis of trends and industry events, our editors interpret the news to highlight opportunities for you, whether your company explores for petroleum or provides finance, capital and advisory services to oil and gas operators.

Tesla Secret

Nikola Tesla Secret - Exposing Tesla's "FREE Energy" Device
Discover How to Use a 100 Year Old Device to Generate FREE Electricity


SolarCity - A Cleaner, More Affordable Alternative to Your Utility Bill
As utility rates continue to rise every year-so will your savings-resulting in thousands in savings over the lifetime of your system. SolarCity makes solar affordable and easy. SolarCity makes it more affordable than ever to go solar. There is no upfront capital investment and installation is free. You simply pay for solar power by the month. And we make it easy. From our free solar consultation to our post installation support, SolarCity manages every step of the process. We even take care of all permits and government rebates to lower your cost, handling all paperwork and maximizing your savings. Home energy evaluations. Only SolarCity offers energy efficiency with solar to holistically address a home's energy needs. After fully evaluating your home, we provide a detailed report that highlights the most effective home improvement options and prioritizes what changes will have the greatest reduction on your utility bills. SolarCity's remodeling and construction services transform a home's health, efficiency and environmental footprint. Call today to see how much you could save.


Buy Solar Panels Photovoltaic Solar Power DIY Solar for Home Energy
GoGreenSolar is your trusted source for solar panels, wind turbines, LED lights, and energy efficiency. Let us help you go green today! Green energy makes economic sense. Millions of jobs can be created, while saving our economy trillions of dollars! The environment will thank us. By embracing green energy we can clean up the air we breathe and reduce the impact fossil fuel based energy has on our world. Green energy has a social benefit. Billions of people around the world still have no access to basic electricity. When green energy goes mainstream with economies of scale, everyone will have access to clean, reliable, efficient renewable energy.

K-Tor Electric Generator

Human Powered Electricity Generators by K-Tor
The Pocket Socket a hand-cranked generator that provides electrical power on the go! It is perfect for anyone who needs to charge a portable electronic device immediately, but does not have access to a wall outlet. From the business traveler to outdoor enthusiast, commuting student to emergency personnel, the Pocket Socket is a great eco-friendly source for emergency backup power. Fully functional anytime, anywhere, it lets you charge a wide variety of electronic devices, including, but not limited to, your cell phone, mp3 player, camera, GPS, or tablet. If you need an adapter included to convert to European two pin standard from US, please let us know. Size: 2.5 x 2.25 x 6.875 inches Weight: 14oz. Power Output: 10W 120V DC @2Hz

Solar Stirling Plant

Solar Powered Stirling Engine to Generate Free Energy and Electricity
The Stirling Engine was created in 1816 by Robert Stirling a Scottish Inventor and is a fueless engine that re-generates its own power and provides free power generation capabilites. You may not have heard about it because global energy companies don't want you to know about it so they can make more profits. It's powered by heat differentials, and one of the most efficient ways to power a Stirling Engine is from the Sun. This is the most efficient Stirling Engine Power Plant we've seen yet.

All Battery

Total Power Solution for Every Battery Need
We offer rechargeable batteries and chargers that are made with industry leading technologies, and the most cost effective manufacturing process. In addition, we offer you a wide spectrum of valuable information on batteries and chargers for your in-depth understanding of the battery world. Our high quality customer service are specially designed and dedicated to offer you a secure, friendly, convenient, private, and informed shopping experience. With our own direct manufacturing of top-quality rechargeable batteries and chargers, we are committed to providing the best battery products and service to you at the most attractive prices. You can easily realize 40-80% saving from the price at retail stores.

How To Make Biodiesel At home

How To Make Biodiesel Fuel At Home


Biodiesel Fuel Chemical Solar Supplies Alternative Energy Store

Stocks: MPC, TGA, ESV