It's no surprise that the broad market is down some 13% over the past three months as concerns about spiraling federal deficits, China's possible economic slowdown, and the plunging euro have all combined to rattle investors.
But in particular, the never-ending BP
So I ran a screen for energy companies that have dropped over the past few months, that are trading for price-to-earnings ratios less than 15, that can grow earnings by at least 20% over the next year, and that have the coveted five-star rating by our 165,000-strong CAPS community. Here's what I found:
Companies |
% Price Change
|
Price-to-Earnings
|
% Earnings Growth
|
---|---|---|---|
USEC |
(22.5%) |
14.9 |
205.6% |
ConocoPhillips |
(6.3%) |
11.9 |
68.1% |
North American Energy Partners |
(14.5%) |
11.6 |
64.9% |
Royal Dutch Shell |
(14.8%) |
10.4 |
61.7% |
Spectra Energy |
(11.9%) |
14.7 |
30.3% |
Statoil ASA |
(17.6%) |
13.8 |
24.7% |
*Capital IQ, a division of Standard & Poor's; Google Finance.
The companies above offer a pretty diverse range of businesses -- Statoil, for instance, is a Norwegian oil and gas behemoth; however, it derives at least 20% of its business from natural gas and has operations everywhere from Scandinavia to Singapore. North American Energy may be a Canadian oil and gas service provider, but it obtains most of its revenues from its mining and construction segment. If the oil sands in Canada get a big bump in production because of the BP disaster here at home, companies like North American Energy could see a similar bump in activity.
Houston-based Spectra Energy is a pretty solid-looking company itself. Our own CAPS All-Star member jahartmu thinks Spectra has everything you'd be looking for in a natural gas company:
Decent P/E and price-to-book ratios, a healthy dividend, and a good chance natural gas will become more important in the coming years despite whatever supply glut may currently exist.
This definitely isn't a list of automatic buy recommendations; however, it is a great place to start doing your own due diligence if you're interested in some great-looking, cheap energy stocks.
Have a different opinion? Sound off in the comments below or head over to the CAPS page and let us know what you think!