When drilling for energy stocks using
Reading the Table
OV / UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage, according to ValuEngine.Note that six of 20 stocks are overvalued, led by Marathon Oil (MRO) ($30.82), overvalued by 25.1%. Tesoro Corp (TSO) ($44.66), overvalued by 10.9%, set a multi-year high at $45.41 on Monday. Fourteen of the 20 stocks are undervalued by 1.2% to 30.8%, with Hess Corp (HES - Get Report) ($51.38), undervalued by 30.1% and Nabors Industries (NBR - Get Report) ($13.71) undervalued by 30.8%. VE Rating: All 20 stocks have a "4-Engine" rating, which is a Buy. Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage. Seven of 20 stocks have declined over the last 12 months, led by NBR's 16.5%. Occidental Petroleum (OXY) ($76.17) declined by 11.6% and Apache Corp (APA) ($77.02) declined by 11.5%. Thirteen of 20 stocks rallied over the last 12 months, led by TSO, with a whopping gain of 101.3%. Another big gainer was Valero Energy (VLO - Get Report) ($33.37), with a gain of 68.0%. VLO is approaching a new multi-year high. Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months. With all twenty stocks buy-rated, their forecast one-year returns are between 5.0% and 12.0%, with TSO and VLO projected to rally by 11.6% and 11.3%, respectively. Twelve month trailing P/E ratios: Note that nine of 20 have single-digit P/E ratios, including TSO and VLO. Another 10 stocks have reasonable P/E ratios, between 10.7 and 16.3. Only Anadarko Petroleum (APC - Get Report) ($74.59) has an elevated 21.7 P/E ratio. Value Level: This is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted. Risky Level: This is the price at which to enter a GTC Limit Order to sell on strength.
At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.