Don’t be tempted by oil laggards, Stifel says

It might seem tempting for energy investors to buy underperforming E&P companies such as Forest Oil (FST) and Newfield Exploration (NFX), but Stifel’s Amir Arif thinks it makes more sense to buy quality names that aren't reflecting proper value rather than trying to catch a year-end bounce in the worst performing names that might have been driven further down from tax-loss related selling.

Investors eyeing energy stocks for a tradeable bounce at the start of the new year don't fare so well, Stifel says; on average, the bottom quartile performers continued to underperform the group by 1.2%, 3.7%, and 2.4% over the coming 30, 60, and 90 days respectively.

Arif’s top picks include Anadarko (APC), Noble Energy (NBL) and EQT, though NFX could be enticing for investors seeking “value turnaround stories."

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Comments (3)
  • swiver
    , contributor
    Comments (59) | Send Message
    6 months ago, Newfield was touted as the stock to buy. And now...?
    24 Dec 2013, 12:55 PM Reply Like
  • User 353732
    , contributor
    Comments (5168) | Send Message
    Retail investors who make decisions based on Wall St "research" make money for their brokers but not for themselves.
    24 Dec 2013, 03:44 PM Reply Like
  • Gigem77
    , contributor
    Comments (2612) | Send Message
    Newfield Exploration Co., Utah's largest crude oil producer, would be able to add 5,750 new oil and gas wells over a 16-year-period at an existing field in a plan that could ultimately yield more than 335 million barrels of oil and nearly 541,000 million cubic feet of natural gas. Deep gas development though 2035 could bolster production of natural gas to a yield of 6.9 trillion cubic feet, according to the plan.
    27 Dec 2013, 09:50 PM Reply Like
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