Top Five All-Around Value Stocks

We have rated Hess a buy since August 2004 due to a variety of strengths. Propelled by price increases for natural gas, natural gas liquids and oil, the company's total revenue and non-operating income for the first quarter of fiscal 2008 rose 45% year over year. An increase in average daily production of natural gas and crude oil also contributed to the improvement in total revenue and non-operating income. Hess also announced that its first quarter net income surged to $759 million from $370 million a year ago, again due to higher crude oil prices and increased production. Additionally, net operating income increased significantly in the first quarter, rising 84% from a year ago.

While oil prices are currently trading at record levels, these prices are also highly volatile and cyclical in nature. Because Hess generates a significant portion of its income from the production of oil and gas, any significant unexpected downturn in oil prices could negatively impact earnings. Such a downturn could occur if high oil prices generate higher demand for low-cost alternatives or if the slowdown in the U.S. economy and weakness in the U.S. labor market put further pressure on the demand for oil and gas products.

Total (TOT Quote) is a multinational energy company that maintains operations in more than 130 countries. Together with its subsidiaries, it engages in all aspects of the petroleum industry, including both upstream (oil and gas exploration, development and production, liquefied natural gas) and downstream (refining, marketing, trading and shipping crude oil and petroleum products) operations. The company also produces base chemicals such as petrochemicals and fertilizers, cholorochemicals, performance polymers and specialty chemicals for the industrial and consumer markets. Additionally, Total has interests in the coals mining and power generation.