Buy Into the Energy Conundrum

This column was originally published on RealMoney on Aug. 17 at 10:00 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

There's a conundrum in the energy sector.

Most energy traders and strategists project that Nymex crude oil will eventually rise to $100 a barrel. At the same time, Wall Street analysts say that energy stocks are cheap, with many companies trading at levels associated with $50 oil, or lower.

My models agree with the analysts, and suggest that this is a good moment to add to holdings of several oil-related names on weakness. ...