Oil Heading for a New High – Stocks to Own
By Steve Patterson
Crude oil peaked at 100 in
January, dipped into a trading range of 86 to 94 for about a month, and has now
broken out to the upside reaching 98 this morning. This has allowed a number of
oil drilling/exploration and oil equipment/services companies to rally and they
are doing quite well today.
Oilwell Varco (NOV) is a nice company to own in the Oil & Gas Equipment and
Services industry. They do not offer a dividend but the growth is solid with
25% revenue growth in the current quarter and rising expectations for the
earnings this year. With a price to earnings ratio at 18 and Year over Year
growth of 57.5%, I would consider the stock cheap. The stock is up 83% this
year but has more room to go if oil continues to perform well in the near term.
is my pick in the Oil & Gas Drilling and Exploration industry. Again this
company does not offer a dividend but their sales growth is off the charts at 93%
in the current quarter and 122% in the next. Analysts have continued to
increase their expectations for earnings growth in the current quarter, the
next quarter, and for the year. With a P/E of 14 and earnings growth of 215%,
this stock is very cheap at these levels. For the past 52 weeks, the stock has
risen 69% but is off its high for the period of 149, currently trading at 131.