Best and Worst Oil Stocks

BY Louis Navellier | 08/13/10 - 12:05 PM EDT

Stock quotes in this article: BP, NR, RPC

Comment

Find out if (BP) is in Cramer's Portfolio.

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.

Select the service that is right for you!

COMPARE ALL SERVICES

Action Alerts PLUS

TRY IT FREE

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:

$2.5+ million portfolio
Large-cap and dividend focus
Intraday trade alerts from Cramer
Weekly roundups

Dividend Stock Advisor

TRY IT FREE

New! $49.95/yr

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:

Diversified model portfolio of dividend stocks
Alerts when market news affect the portfolio
Bi-weekly updates with exact steps to take - BUY, HOLD, SELL

Stocks Under $10

TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:

Model portfolio
Stocks trading below $10
Intraday trade alerts
Weekly roundups

Real Money

TRY IT FREE

24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.

Product Features:

Jim Cramer + 20 Wall Street pros
Intraday commentary & news
Real-time trading forum
Actionable trade ideas

Real Money Pro

TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:

Real Money + Doug Kass + 15 more Wall Street Pros
Intraday commentary & news
Ultra-actionable trading ideas

Options Profits

TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:

100+ monthly options trading ideas
Actionable options commentary & news
Real-time trading community
Options TV

To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.