CHICAGO, July 8, 2011 /PRNewswire/ -- Today, Zacks
Investment Ideas feature highlights Features: CVR Energy,
Inc. (NYSE: CVI), Stone Energy (NYSE: SGY) and
Complete Production Services (NYSE: CPX).
It's Time to Buy Energy Stocks
Do you own any energy stocks?
Even with crude trading around $100 a barrel and sky high gasoline prices,
energy stocks seem to be out of favor with most investors. I hardly
hear any buzz about them.
Conversely, back in 2007 and 2008 when crude was soaring to a
new high of $147 a barrel, all anyone
wanted to be in were energy stocks.
Where's the love now?
Over the last 6 months, the perfect storm of higher commodity
prices and stronger demand has been brewing which means earnings
estimates in the energy sector are rising.
This could be just the beginning of an earnings explosion.
It's Time To Get Back Into Energy
Without much fanfare, many energy stocks have been moving higher
over the last six months.
Does that mean it's too late to get in?
Never fear.
While shares have moved higher, the valuations are still
extremely attractive. You won't see any P/Es in the 50s or the 60s
like you will with the popular Internet and technology stocks.
Instead, you'll find just the opposite.
Energy stocks are actually cheap. Now is the time to bulk up
your portfolio with solid names expected to grow earnings by the
double and triple digits.
Forget Big Oil
There are a lot of ways to "play" energy.
Most investors routinely turn to the large, well known
integrated energy stocks like Dow components Exxon and Chevron when
they're buying energy stocks. There's nothing wrong with this
strategy.
But you can do better.
Seek out growth in the lesser known names in the exploration,
refining and drilling services sectors.
All have their hand on the pulse of the energy market but the
upside possibility is greater than with the slower growing Big Oil
plays.
3 Amazing Energy Stocks to Buy Right Now
1. CVR Energy
2. Stone Energy
3. Complete Production Services
These 3 energy stocks are all cheap, are expected to see huge
earnings growth and have momentum as they're trading near 52-week
highs.
That is the triple threat- a stock with value, growth and
momentum all rolled into one.
1. CVR Energy, Inc. (NYSE: CVI) is a mid-continent
refiner which also is majority owner of a nitrogen fertilizer
producer it spun off earlier this year.
Forward P/E: 8.7
Expected 2011 EPS Growth: 784%
This Zacks #1 Rank (strong buy) has a ton of momentum, with
shares at 52-week highs, up 76.5% in the last 6 months compared to
the S&P 500's return of just 6.2%.
2. Stone Energy (NYSE: SGY) is a mid-cap oil and natural
gas explorer with interests in the Gulf
of Mexico and Appalachia.
Forward P/E: 9.4
Expected 2011 EPS Growth: 66.4%
This Zacks #2 Rank (buy) has been trading in a more narrow
trading range recently and will tend to move with the price of
crude. Still, shares are new 52-week highs and have returned 50% in
the last 6 months.
3. Complete Production Services (NYSE: CPX) is a way to
get in on the unconventional oil and gas plays in the shale regions
of North America. This Zacks #1
Rank (strong buy) provides oilfield services which focus on the
completion and production phases of oil and gas wells.
Forward P/E: 12.8
Expected 2011 EPS Growth: 150.4%
The drilling service companies are hot. Shares have risen 150%
in the last 6 months, well outpacing the S&P 500's 6.2%
return.
Buying Opportunity in Energy
Instead of complaining about the price of gas (as I certainly
do!)- you can get in the game by actually becoming an owner of
energy stocks.
These 3 energy stocks are cheap but are expected to see huge
growth in 2011. That's a winning combination.
[The author of this article owns shares of Exxon.]
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