STOCK PICKS: Top 5 Large-Caps for July 9

Murphy Oil has been rated a buy since March 2003. The company's strengths include its healthy growth in net income and revenue, solid stock performance and impressive record of earnings per share growth. For the fourth quarter, the company reported year-over-year revenue growth of 90.6%, and net income increased by 269.7%. The growth in net income was driven by higher crude oil prices and sales volume, while higher natural gas prices and an increase in the average daily production of natural gas and crude oil contributed to the improved revenue. The company reported significant earnings per share (EPS) growth to $2.14 from 58 cents a year ago, continuing its pattern of positive EPS growth over the past two years. Additionally, Murphy Oil's stock price has surged 47.46% over the past year.

It is important to remember that any unexpected sharp downturn in oil and gas prices could negatively affect Murphy Oil's earnings. In addition, oil prices, which are highly volatile and cyclical in nature, are trading at record levels and could be vulnerable to weaker economic conditions. High prices may also create heightened demand for low-cost alternatives, and could thus hurt overall demand for oil and gas products.

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Questar(STR Quote) is a natural gas-focused energy company. The company has four major lines of business: gas and oil exploration and production, midstream field services, interstate gas transportation and retail gas distribution. These businesses are conducted through three main subsidiaries: Questar Market Resources, Questar Pipeline Co. and Questar Gas Co. The company operates in the Rocky Mountain and Midcontinent regions of the U.S. These regions include parts of Wyoming, Utah, Colorado, Oklahoma, Texas and Louisiana.