2. OIL AND GAS
Top Pick: Halliburton (HAL) is an oilfield-services company. Second-quarter profit soared 83% to $480 million, or 52 cents a share, as revenue increased 26%. The operating margin rose from 14% to 17%. Halliburton has $3.1 billion of cash and $4.6 billion of debt, converting to a quick ratio of 2 and a debt-to-equity ratio of 0.5. Halliburton's stock trades at a forward earnings multiple of 14 and a sales multiple of 2 -- 34% and 19% discounts to peer averages. It's expensive based on book value and cash flow. Roughly 94% of analysts rate the stock "buy."
Bullish Scenario: Jefferies (JEF) values Halliburton at $54, suggesting a 59% return.
Three More Top-Ranked Oil and Gas Stocks:Schlumberger (SLB) Occidental Petroleum (OXY) EQT Corp. (EQT)
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV