This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

8 Energy Stocks With Upside: Petrobras Leads

NEW YORK (TheStreet) -- The outlook for crude is optimistic with the December 2011 futures contracts touching $100 a barrel on Nov. 24, according to Bloomberg data. A bullish outlook for crude oil augurs well for energy stocks, especially since the sector took a beating after a BP (BP) deepwater oil rig exploded in the Gulf of Mexico -- one of the biggest natural disasters to date. Crude is up 7%-8% this year, although experts foresee prices hitting $100 a barrel next year as spare production capacity shrinks on accelerating demand.

Positive U.S. economic releases, a stable China and India growth rates could support the spike in crude oil prices. However, slower euro zone growth could dampen the uptrend. Nevertheless, the Energy Select Sector SPDR (XLE) is outperforming the SPDR S&P 500 ETF (SPY), delivering year-to-date returns of 10% and 7%, respectively.

We have selected eight energy ADRs with potential upsides. These oil companies have strong fundamentals and earning prospects. Companies like Eni (E) could grab headline news as the government of Italy plans to sell its stake in the company. In contrast, Total (TOT), Repsol YPF (REP), Royal Dutch Shell (RDS.A) and Statoil (STO) have attractive dividend yields of 4.7%, 5.9%, 5.5% and 4.6%, respectively. Better dividend yields could make long-term investments in these companies productive, especially given the volatile market conditions.

Several companies like BG Group (BRGYY), OGX Petroleo (OGXPY) and Petroleo Brasileiro (PBR) have expansion plans from several exploratory wells in Brazil. This augurs well for these companies as newer capacities would boost their earnings profiles in the long term. China Petroleum & Chemical Corporation (SNP) expects production from Puguang's main block to continue for more than 20 years. The stocks are stacked by upside, great to greatest.

Stock quotes in this article: E, TOT, REP, RDS.A, STO, PBR, SNP, BRGYY 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

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
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
Dividend Stock Advisor
Try it NOW

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
Real Money Pro
Try it NOW

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 Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.
DOW 16,362.68 +100.12 0.62%
S&P 500 1,849.54 +6.56 0.36%
NASDAQ 4,048.7880 +14.6270 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs