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4 Overpriced Energy Stocks To Sell

Some energy stocks are looking too expensive to hold anymore

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Energy Stocks to Sell: Chesapeake Energy (CHK)


Turnaround plays often make for some of the best gains in a portfolio, and beleaguered natural gas firm Chesapeake Energy (CHK) is a prime example.

CHK stock managed to surge nearly 35% last year as investors hoped that the ouster of CEO Aubrey McClendon would help CHK lead energy stocks once again. But all it actually seemed to do was make CHK stock quite expensive relative to its peers — CHK currently trades for a P/E of nearly 36.

What’s troubling is that the ghosts of McClendon past continue to haunt the firm. High debt, falling production and continued asset sales are still going on in spades at the former natural gas stock giant. And given just how expensive CHK is trading for currently, that doesn’t exactly make it a bargain buy at these levels.

For investors who bet on a turnaround last year, the time to sell CHK is now.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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