One of Standard & Poor's favorite funds in the natural resources sector, which overlaps the energy sector, is the Franklin Natural Resources Fund (FRNRX). The ratings firm gives it five stars, its highest.
The fund was up 8.7% this year, through March 23, while the average for natural resources funds was a return of 5.8%.S&P mutual fund analyst Todd Rosenbluth said the fund has outperformed its peers over the past year, three years and five years, and has kept the same management team throughout -- a big plus. It also has a much lower management fee, at 1.05%, than the average of 1.6% for other funds in its sector. The fund's top 25 holdings are all energy stocks. One of its top performers this year is Devon Energy (DVN), at 3.3% of the portfolio, and sporting a 19% return this year. It has a market value of $40 billion. Devon is one of the largest independent exploration and production companies in North America. It owns conventional oil and natural gas properties as well as oil shale and oils sands projects. In 2010, the company sold over $10 billion in assets, mainly in the Gulf of Mexico, Brazil and Azerbaijan, turning the company into a pure-play, onshore North American company. S&P has a "buy" recommendation on its shares and gives the company a four-star rating out of a possible five. It has a $100 price target on its shares, which are currently trading at $92.87. Analysts' opinions include nine "buy" ratings, 11 "buy/holds," and 10 "holds," according to S&P. Those analysts' estimates show that Devon will earn $6.14 per share in 2001, rising 24% to $7.60 per share in 2012.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV