10 Oil and Gas Stocks to Sell

Despite the price at the pump, dump these oil and gas stocks

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10 Oil and Gas Stocks to Sell

Crude oil prices remain steep, above $100 a barrel right now, and many think that gas prices could approach $5 by the end of 2012. As a result, you’d think that many oil and gas stocks are top investments right now due to the hefty price they’d earn from selling their reserves.

That’s not the case for all energy investments, however. I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures, looking for opportunities to both buy and sell into the market.

This week, I have identified 10 oil and gas stocks that are big-time sells despite the fundamentals in the sector discussed above. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

Hess Corp. (NYSE:HES) explores for, develops, produces, purchases, transports and sells crude oil and natural gas. In the last year, HES stock is down more than 21%, compared to a gain of 9% for the Dow Jones in the same time. Hess stock gets a “D” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “D” grade for the magnitude in which earnings projections have increased over the past months, and an “F” grade for cash flow. For more information, view my complete analysis of HES stock.

Encana Corp. (NYSE:ECA) is a well-known North American energy producer based in Calgary. Since last March, Encana has posted a significant loss of 35%.  ECA stock gets an “F” grade for operating margin growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “F” grade for the magnitude in which earnings projections have increased over the past months, an “F” grade for cash flow, and a “D” grade for return on equity. For more information, view my complete analysis of ECA stock.

Murphy Oil Corp. (NYSE:MUR) is involved with oil and gas exploration and production and operates in the U.S. and U.K. In the past 12 months, MUR stock is down 15%. Murphy stock gets a “D” grade for operating margin growth, an “F” grade for earnings growth, a “D” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “D” grade for cash flow. For more information, view my complete analysis of MUR stock.

Talisman Energy Inc. (NYSE:TLM) is a global, diversified, upstream oil and gas company that has posted a major loss of 41% in the last year. Talisman stock gets a “D” grade for operating margin growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “F” grade for the magnitude in which earnings projections have increased over the past months, and an “F” grade for cash flow. For more information, view my complete analysis of TLM stock.

Petrobras Petroleo Brasileiro (NYSE: PBR) is based in Brazil and is another integrated oil and gas company on the list. PBR has lost 12% in the last 12 months. PBR stock gets a “D” grade for earnings growth, a “D” grade for the magnitude in which earnings projections have increased over the past months and a “D” grade for cash flow. For more information, view my complete analysis of PBR stock.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/ten-oil-and-gas-stocks-to-sell-hes-mur-tlm-pbr-tot-cno-dvn-chk/.

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