By Louis Navellier of InvestorPlace
The environmental, financial and all-around human disaster that is the BP (BP) oil spill is finally coming to a close, as efforts to eradicate any remnants of the leak are finally approaching the end stage. Now the focus for BP has turned legal.
On Tuesday, a federal panel appointed a judge to oversee the hundreds of lawsuits brought by injured oil rig workers, fishermen and hotel owners. And while BP and its plaintiffs will be hashing compensatory issues out in the courts, investors need to start looking at the court of fundamentals to determine which oil service stocks deserve their attention.
I've had many people ask me recently if the time is now right to once again buy oil stocks and oil drilling stocks. My answer to them is both yes, and no. That's because the focus now rightly will return to two critical characteristics. The first is strong fundamentals, and by that I mean sales and earnings growth. The second is strong buying pressure. If investors are buying a stock, then you've got momentum on your side. Conversely, if there's a lot of selling taking place, then you'd better heed the warning of the herd. Right now in the oil drilling space, there are three oil stocks my Portfolio Grader tool rates as buys and three oil stocks that are rated as sells.
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