Encore Energy Partners
(ENP) develops oil and gas properties. Encore swung to a second-quarter profit of $26 million, or 58 cents a share, from a year-earlier loss. Revenue grew 22% to $45 million. The operating margin jumped from 9.4% to 30%. Encore's stock trades at a book value multiple of 2.1, a 48% discount to the oil and gas industry average. It's expensive based on forward earnings, sales and cash flow. Of analysts covering Encore, one rates its stock "buy", three rate it "hold" and one ranks it "sell." A median target of $20 implies 8.9% upside.