3. Abraxas Petroleum (AXAS)
Company Profile: Abraxas Petroleum is an independent energy company, developing and producing oil and gas in the U.S. from the Rock Mountain, Permian Basin and Gulf Coast regions.Share Price: $3.23 (June 27) Stock Performance This Year: -29% Analyst Consensus: Wall Street gives Abraxas strong marks, with nine analysts rating the stock a "buy," including those at Stifel Nicolaus and R.W. Baird. The only other firm following the stock, EVA Dimensions, has a "sell" rating on Abraxas. The average price target of $6.18 implies 91% upside potential. Bullish Case: C.K. Cooper & Co. analyst Joel Musante upgraded shares of Abraxas to "buy" from "hold" on May 16, as the stock has fallen to an attractive level compared with his price target of $5.50. Musante notes that Abraxas may experience some challenges that negatively impact production growth, but he also highlights the company's oil development projects in the Bakken, Niobrara/Turner Sandstone in Wyoming and the Permian Basin of West Texas. TheStreet Ratings has a "hold" on the stock, arguing that the company's "solid stock price performance, expanding profit margins and notable return on equity" are countered by "deteriorating net income, generally poor debt management and weak operating cash flow."
2. DryShips (DRYS) Company Profile: DryShips, based in Greece, is a dry-bulk transportation company. DryShips also owns ultra-deep-water drillships and oil-tanker vessels. Share Price: $3.96 (June 27) Stock Performance This Year: -28% Analyst Consensus: DryShips garners a whopping 10 "buy" ratings from Wall Street analysts, including those at Sterne Agee, Wells Fargo Securities and Cantor Fitzgerald. Five other analysts say investors are better off holding on to shares, and two more have a "sell" rating on DryShips. The average price target of $5.93 implies nearly 50% upside from where the stock currently trades. Bullish Case: In a June 27 research note, Sterne Agee analyst Salvatore Vitale wrote that DryShips' plan to list drilling contractor Ocean Rig on the Nasdaq this summer "will be a catalyst to unlock the value of the Ocean Rig business. Our valuation for DRYS is based on our sum-of-the-parts analysis, which yields a $6 price target." On the other hand, TheStreet Ratings has a "sell" rating on DryShips, due to "disappointing historical performance in the stock itself and generally weak debt management."
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 Plus 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