Yesterday I talked about the strength in the oil industry and how it’s completely undervalued and been unfairly hit hard by the recent struggles of BP. Here I am now to talk about myfavorite picks and why I like them. Read below:
Top Oil Stocks
Chevron (NYSE:CVX) - Good overall play as they have very low exposure to refining while holding a stellar exploration portfolio. With rising oil prices this stock is a no brainer. Chevron also posses a solid 4% dividend yield and is currently trading at around eight times earnings.
ConocoPhillips (NYSE:COP) – Holds a strong array of natural gas positions which could be the future of energy after the recent series of events. Adding to this they are strong globally and posses many valuable assets that will strengthen the companies prospects.
PetroBras (NYSE:PBR) – Love this stock however it has been the worst performing stock in Brail throughout the first half of the year due to capital problems and the BP Oil Spill. I feel this overhang has kept the stock low which presents a great buying opportunity as PBR continues to be under-valued when matched up against it’s peers. My gut feeling is once these few issues are washed away this stock will rise.
Suncor (NYSE:SUN) - Refineries and Oil Drillers such as Suncor should succeed as many have been hit hard unfairly due to the BP crisis. I think this stock will be trading at around $40 a year from now supported by a solid dividend makes it an attractive investment.
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Disclosure: "Long PBR & CVX"