10 Oil and Gas Stocks to Sell

by Louis Navellier | March 14, 2012 12:11 pm

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[1] 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[2]) 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[3].

Encana Corp. (NYSE:ECA[4]) 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[5]) 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[6].

Talisman Energy Inc. (NYSE:TLM[7]) 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[8].

Petrobras Petroleo Brasileiro (NYSE: PBR[9]) 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[10].

Total (NYSE:TOT[11]) is a French oil and gas company with operations in more than 130 countries. TOT stock has posted a modest loss of 5% since last March. Total stock gets an “F” grade for sales growth, a “D” grade for earnings growth, a “D” grade for earnings momentum, and a “D” grade for cash flow. For more information, view my complete analysis of TOT stock[12].

Canadian Natural Resources (NYSE:CNQ[13]) acquires, explores, develops, produces, markets and sells crude oil, NGLs and natural gas. A drop of 24% in the last year has left shareholders shaking their heads. Canadian Natural Resources stock gets an “F” grade for operating margin growth and a “D” grade for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of CNQ stock[14].

Devon Energy Corp. (NYSE:DVN[15]) is another independent energy company involved with natural gas and natural gas liquids. DVN stock has lost 18% in the last year. Devon stock gets a “D” grade for operating margin growth, a “D” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of DVN stock[16].

Chesakeake Energy Corp. (NYSE:CHK[17]) is a natural gas producer with 46,000 producing natural gas and oil wells. In the last year, CHK stock has slid 25%, compared to gains by the broader markets. Chesapeake stock gets a “D” grade for operating margin growth, a “D” 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 CHK stock[18].

Southwestern Energy Co. (NYSE:SWN[19]) is the last independent oil and gas company to make the list with a yearly loss of 9%. SWN stock gets 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 a “D” grade for cash flow. For more information, view my complete analysis of SWN stock[20].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[21] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors

Endnotes:
  1. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  2. HES: http://studio-5.financialcontent.com/investplace/quote?Symbol=HES
  3. For more information, view my complete analysis of HES stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=hes&submit=submit&type=site
  4. ECA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ECA
  5. MUR: http://studio-5.financialcontent.com/investplace/quote?Symbol=MUR
  6. For more information, view my complete analysis of MUR stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=mur&submit=submit&type=site
  7. TLM: http://studio-5.financialcontent.com/investplace/quote?Symbol=TLM
  8. For more information, view my complete analysis of TLM stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=tlm&submit=submit&type=site
  9. PBR: http://studio-5.financialcontent.com/investplace/quote?Symbol=PBR
  10. For more information, view my complete analysis of PBR stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=pbr&submit=submit&type=site
  11. TOT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TOT
  12. For more information, view my complete analysis of TOT stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=tot&submit=submit&type=site
  13. CNQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=CNQ
  14. For more information, view my complete analysis of CNQ stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=cnq&submit=submit&type=site
  15. DVN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DVN
  16. For more information, view my complete analysis of DVN stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=dvn&submit=submit&type=site
  17. CHK: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHK
  18. For more information, view my complete analysis of CHK stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=chk&submit=submit&type=site
  19. SWN: http://studio-5.financialcontent.com/investplace/quote?Symbol=SWN
  20. For more information, view my complete analysis of SWN stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=swn&submit=submit&type=site
  21. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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