NEW YORK ( TheStreet) -- CNOOC ( CEO), Petroleo Brasileiro ( PBR), Royal Dutch Shell ( RDS/A), Total ( TOT), Eni ( E), Sinopec ( SNP), BP ( BP), LDK Solar ( LDK), JA Solar Holdings ( JASO), ReneSola ( SOL) are among the energy stocks trading with good discounts to the market.

The unrest engulfing the Middle East and North Africa have supported the current upswing in crude oil prices. Going ahead, we expect energy stocks to outperform the broader markets on improving macro-economic fundamentals. Year-to-date, the S&P 500 Index gained 6.0%, while the S&P 500 Energy Index surged 16.8%.

In the current market environment of volatile oil prices, the following 10 energy stocks are trading at deep discounts. These stocks are selling at an average forward price-to-earnings ratio of less than 8, while the S&P 500 index is trading at a P/E ratio of 16.2.

The following 10 energy stocks are expected to gain up to 53% over the next 12 months, according to analysts polled by Bloomberg.

10. CNOOC ( CEO) is a China-based producer of offshore crude oil and natural gas. The company has four offshore production fields in China and operates upstream assets in countries like Nigeria and Australia.

For 2010, the company reported net production of 329 million barrels of oil equivalent (BOE), representing a 44% increase year over year. This increment can be attributed to a production ramp-up at projects that have come onstream since 2009 and contribution from newly acquired projects.

Revenue rose 77% year over year during 2010, benefiting from increased oil and gas production. The company made 13 new discoveries, and nine new oil and gas fields commenced production.

In 2011, the company's annual production target is 355 million to 365 million BOE. The stock gained 57% in the last year. Of analysts covering the stock, 75% rate it a buy. Shares are trading with a P/E of 11, based on 2011 estimates.

9. Petroleo Brasileiro ( PBR/A) is an integrated Brazilian oil and gas company operating in segments like exploration and production, refining, transportation and marketing of gas and power.

In 2010, net income rose 17% from 2009 following increased demand for its oil products in the domestic market. In the segmented results, exploration and production contributions to net income were the highest, benefitting from crude oil prices and production volume.

Exploration and production capital expenditure stood at $27 billion in 2010. Most of the investments were utilized for presalt projects. Overall, experts peg 2011 capital expenditures at around $30 billion to $35 billion.

The stock shed about 12% during the last year. However, analysts expect the stock to outperform going forward. The stock could gain about 16%, according to the average analyst price target. Shares are currently trading with a P/E of 10, based on 2011 estimates.

8. Royal Dutch Shell ( RDS.A) is a Netherlands-based oil and gas company operating in three business segments: upstream, downstream and corporate.

Revenue increased 26.5% year over year to $105.5 billion during the fourth quarter, while net income grew 246% to $6.8 billion. For full-year 2010, revenue and net income grew 32% and 61%, respectively.

In 2010, Royal Dutch Shell started six projects upstream and downstream. In early 2011, production started at Qatargas 4 LNG facility, and commissioning is underway at the Pearl GTL plant. With these projects coming onstream, Shell is targeting an 11% increase in oil and natural gas production from 2009 to 2012.

Reviewing the business performance, Peter Voser, Royal Dutch Shell CEO, said in a press statement, "Our 2010 earnings increased substantially from 2009 levels, driven by improving industry fundamentals, and Shell's production growth and cost performance. Our 2010 oil and natural gas production volumes was 3.3 million barrel per oil equivalent per day, an increase of 5%. LNG sales volumes increased by 25%, with continued growth in Downstream. Fourth quarter and full year 2010 earnings were supported by higher oil prices and chemicals margins."

The stock is trading with a P/E of 9.5, based on 2011 estimates.

7. Total ( TOT) is an integrated oil and gas company with operations in more than 130 countries. Overall, Total has interests in 24 refineries located in Europe and the U.S., as well as retail network of more than 16,000 stations worldwide.

The company's revenue and net income increased 17% and 21.5%, respectively, for the fourth quarter of 2010 compared to the same quarter in 2009.

Total's return ratios are better than its peers. Total's return on average assets and return on average equity for 2010 stood at 8% and 18.7%, respectively. Net profit margin and operating margin were 7.7% and 13.8%, respectively.

The stock made modest gains of 3% in the last year, and analysts are positive on the stock. They expect the stock to deliver 14% gains in the next year. As per Bloomberg, 67% of analysts covering the stock rate it a buy. Shares are trading with a P/E of 8.5, based on 2011 estimates.

6. Eni ( E) is engaged in activities like oil and natural gas and petrochemicals. The company has operations in 77 countries.

For the fourth quarter of 2010, the company reported net production of 1.95 million barrels of oil equivalent (BOE), representing a 2% increase year over year.

During 2010, Eni strengthened its presence in Venezuela and Iraq. Eni signed agreements for developing the Junin 5 oilfield and discovered the maxi gas field Perla offshore in Venezuela. In Iraq, the company has undertaken development projects at the giant Zubair oilfield.

Operating profit and net profit rose 16.6% and 23.6%, respectively, during the fourth quarter of 2010 compared to the same quarter of 2009. Capital expenditure amounted to $5.5 billion for the fourth quarter and $19.5 billion for the full year of 2010.

Based on the average analyst price target, the stock could gain 21% over the next year. Among analysts rating the stock, 60% give it a buy rating. Shares are trading with a P/E of 7.8, based on 2011 estimates.

5. Sinopec ( SNP) is a China-based integrated oil & gas and chemicals company.

Revenue jumped 42% during full-year 2010, while net income improved 13% during the same period. The company produced 328 million barrels of crude oil and 441 billion cubic meters of natural gas, representing increases of 0.1% and 48%, respectively, over the same period last year.

The company owns eight of the top 10 refineries in China, and its refining capacity that's ranked second globally. With the government's new refined oil pricing mechanism since 2008, Sinopec's refining business has turned around after years of loss-making.

Of analysts surveyed by Bloomberg, 75% give this stock a buy rating. Upstream asset injections from the parent company and changes to the refined product pricing mechanism are probable triggers. The stock appreciated 18% during the last year, and the average analyst estimate is for the stock to rise 17% over the next year. The stock is trading with a P/E of 7, based on estimated 2011 earnings.

4. BP ( BP) is an international oil and gas company.

During the fourth quarter of 2010, net income rose 30% year over year to $5.6 billion. For all of 2010, the net loss was $3.7 billion, compared with $16.6 billion in 2009. The quarterly and annual numbers include pretax charges of $1 billion and $41 billion, respectively, related to Gulf of Mexico oil spill.

The company announced a global strategic alliance with Rosneft Oil company during the quarter to explore and develop three license blocks on the Russian Arctic region.

Total capital expenditure for the fourth quarter of 2010 and for the full year were $5.5 billion and $23 billion, respectively.

The stock shed about 22% over the past year, but analysts expect the stock to outperform going forward. The average analyst estimate is for the stock to gain 20% during the next year. Shares are currently trading with a P/E of 7, based on estimated 2011 earnings.

3. LDK Solar ( LDK) is a vertically integrated manufacturer of PV products and is the world's largest producer of multi-crystalline solar wafers.

Net sales for the fourth quarter of fiscal 2010 were $921 million, compared with $305 million for the fourth quarter of fiscal 2009. Gross margin was 27.3%, compared with 9.9% in the fourth quarter of fiscal 2009. Net income for the fourth quarter was $145 million, compared with a net loss of $24.3 million for the fourth quarter of 2009.

For all of 2011, LDK Solar expects revenue in the range of $3.5 billion to $3.7 billion, wafer shipments of 2.7 GW to 2.9 GW, module shipments of 800 MW to 900 MW and gross margin between 27.0% and 29.0%.

Analysts polled by Bloomberg are positive on the stock and expect it to gain about 32% in a year's time. The stock is trading with a P/E of 5, based on estimated 2011 earnings.

2. JA Solar Holdings ( JASO) is a China-based manufacturer of high-performance solar power products.

Actual sales recorded for the fourth quarter were consistent with analysts' estimates. Revenue for 2010 fourth quarter came in at $584.3 million, increasing 137% from $246.5 million registered in the fourth quarter of the prior year.

The gross margin dropped to 19.2% from 20.6% a year before. Gross profits increased to $112.2 million from $50.8 million in same quarter of 2009. Earnings per share beat analysts' estimates.

Total solar product shipments for the fourth quarter were 463 MW, growing 100% from 231 MW during the same period last year. Based on demand, JA Solar expects total cell and module shipments to surpass 2.2 GW in 2011, or a 50% increase from 2010.

Of analysts covering the stock, 46% have buy ratings on it. Their average price target implies that shares will gain 35% over the next year. Shares are trading with a P/E of 4.9, based on estimates 2011 earnings.

1. ReneSola ( SOL) is a China-based manufacturer of solar wafers and solar module products.

Actual sales and earnings recorded for the fourth quarter were higher than analysts' estimates. Net revenue during the fourth quarter of 2010 rose 7.7% from third quarter of 2010. Net income came in at $61 million, vs. a loss of $28.1 million in the same quarter last year.

The company managed to secure 20 long-term contracts in 2010, representing about 1.3 GW of expected wafer sales in 2011. Total solar wafer and module shipments for full-year 2010 were at a record 1.18 GW.

Regarding the business performance, Julia Xu, ReneSola's CFO, said in a press statement, "Our strategic execution in 2010 generated strong operating cash flows and prudent capital expenditures that have significantly improved our balance sheet. Our net debt-to-equity ratio has been reduced to 33.8% in 2010 from 104.9% in 2009, positioning us well as we look to capture market share through capacity expansions. In addition to record revenues of US$1.2 billion and record shipments of 1.2 GW, we achieved impressive gross and operating margins of 28.9% and 20.4%, respectively, for the full year 2010".

Of analysts covering the stock, 81% give it a buy rating. Their average price target implies the stock will gain 53% in the next year. The stock is trading with a P/E of 4.7, based on estimated 2011 earnings.

>>To see these stocks in action, visit the 10 Energy Stocks Selling at a Discount portfolio on Stockpickr.