This Day On The Street
Continue to site
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

7 Oil and Gas Stocks to Sell Now: Navellier

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( InvestorPlace) -- Oil investments have been on the rise as crude prices have skyrocketed. Unfortunately, not all oil and gas stocks are created equal. Here are seven major oil investments you should sell immediately and replace with better crude stocks if you want to profit from expensive gas prices:

Petrobras: Integrated oil and gas company Petrobras (PBR - Get Report) is the first energy stock worth selling, having watched its stock price drop -12% over the past 12 months, compared to gains +11% for the Dow Jones and S&P 500 each. After regaining in the start of 2011, this stock has seen another drop of -4% in the last two weeks. Not exactly a leader among oil and gas investments.

BP: While BP (BP - Get Report) may have rebounded from its terrible summer performance following the Gulf oil spill, this stock is still down -20% in the last year. More recently, BP stock has sunk another -2% in the last 30 days. Analysts are projecting earnings to be 19 cents lower than the EPS posted this quarter last year, making it stand out as a lackluster oil and gas stock.
  • Related Article: 7 Small Cap Stocks with +7% Yields
  • Total S.A.: International oil and gas company Total S.A. (TOT - Get Report) may have had a solid start to 2011, but since the first week in March, this stock has fallen -4%. More dismal numbers are found in this oil company's financial statement, where it recently reported a quarterly earnings growth of -2%.

    ENI S.p.A.: Since the middle of February, ENI S.p.A. (E) has watched its stock value diminish -4%, much like other stocks on this list. As consumers start switching off their heaters from this winter, the stock price of this oil, gas and power generation company should continue to trend down.
  • Related Article: 5 Nuclear Stocks to Buy Despite Japan Crisis
  • Tenaris S.A.: Holding company Tenaris S.A. (TS - Get Report) may have had a strong finish to 2010, but is down -6% in 2011, compared to gains by the broader markets. Potential buyers of oil and gas stocks also place a priority on dividends, and with a yield of just over +1%, this investment is not much to hang your hat on.

    Transocean Ltd.: Offshore drilling service provider Transocean Ltd. (RIG - Get Report) is down -2% over the past 12 months, despite gains toward the end of 2010. More recently, RIG has seen its stock value drop -3% since the beginning of March. Most importantly, experts are projecting EPS of just 89 cents, compared to an actual EPS of $2.22 this quarter last year.

  • Related Article: 3 Ways to Invest in the World's Most Dangerous Places
  • Southwestern Energy: While things may look good for Southwestern Energy (SWN - Get Report) at first glance, experts are projecting EPS to be 9 cents lower than the actual EPS reported this quarter last year. Likewise, in its last income statement, SWN reported quarterly earnings growth of -5%. These down earnings numbers should make any potential investor wary.

    >>To see these stocks in action, visit the 7 Oil and Gas Stocks to Sell Now portfolio on Stockpickr.

    As of this writing, Louis Navellier did not own a position in any of the stocks named here.

    One of Wall Street's renowned growth investors, Louis Navellier is the editor of four investing newsletters: Emerging Growth (formerly known as MPT Review), Blue Chip Growth, Quantum Growth and Global Growth. His longest-running publication, Emerging Growth, has a track record of beating the market nearly 3 to 1. Navellier is the author of a BusinessWeek bestseller, "The Little Book That Makes You Rich," and the chairman and founder of Navellier & Associates, Inc.

    Check Out Our Best Services for Investors

    Action Alerts PLUS

    Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    Quant Ratings

    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
    Stocks Under $10

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

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    14-Days Free
    Only $9.95
    14-Days Free
    Dividend Stock Advisor

    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
    • Updates with exact steps to take - BUY, HOLD, SELL
    Trifecta Stocks

    Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

    Product Features:
    • Model Portfolio
    • Intra Day Trade alerts
    • Access to Quant Ratings
    Real Money

    More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

    Product Features:
    • Access to Jim Cramer's daily blog
    • Intraday commentary and news
    • Real-time trading forums
    Only $49.95
    14-Days Free
    14-Days Free
    BP $32.52 0.00%
    E $32.82 0.00%
    PBR $4.64 0.00%
    RIG $13.56 0.00%
    TS $25.70 0.00%


    Chart of I:DJI
    DOW 16,472.37 +200.36 1.23%
    S&P 500 1,951.36 +27.54 1.43%
    NASDAQ 4,707.7750 +80.6910 1.74%

    Free Reports

    Top Rated Stocks Top Rated Funds Top Rated ETFs