The Cheapest Oil Stocks Around

First, let me preface this blog with a little history. Oil and gas stocks, generally, underperform this time of year and don’t get going until the beginning of the driving season, which happens in March. Having said that, this is the time of year to start building positions in excellent companies, who’ve demonstrated an ability to perform during all sort of market environments.

Using a new tool inside of The PPT that evaluates are ‘fair price target’, using earnings growth for the previous 8 quarters and assigning an ‘fair PE’ multiple to it, the following oil and gas stocks are the cheapest.

(stock, % from fair value, here is PPT screen for members)

PACD -68%

EMES -64%

BTE -61%

PDS -57%

WFT -56%

BHI -52%

FANG -49%

PE -49%

SLCA -43%

HCLP -41%

RES -41%

HAL -39%

I can go on. You get the gist. The market is pricing in cataclysm for the oil and gas industry. While deep drillers may have structural issues to fend off, traditional drillers should bounce back sharply, once prices stabilize.

The world run on oil. Never forget it.

 

 

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