Oil Stock #1 CNOOC (CEO)
China National Offshore Oil Corporation (NYSE: CEO) had a slow start to 2011, due to the spectacular performance in 2010. And it was normal to see a correction as there was some institutional allocation out of emerging market equities into developed market equities in the beginning of the year. As discussed here before, those are short-term institutional moves that may cause a correction in CNOOC and broader markets in general, but that is unlikely to become a long-term trend.
With stellar earnings in 2010, and 35% percent EPS growth expected in 2011, the 13 P/E that investors now pay for this oil stock is cheap, despite the triple-digit share price.