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A Big Upgrade for United States Oil

By Dave Mock - Updated Apr 5, 2017 at 7:52PM

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This bullish call comes from more than just one analyst.

Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track record of the company behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 125,000 members, many of whom demonstrate better investing insight than published analysts do.

More top-performing CAPS members are jumping on the United States Oil Fund (AMEX:USO) bandwagon recently. They've sent what was a long-held two-star rank up two tiers to four stars in only a few months. A total of 1,021 members have given their opinion on United States Oil, with many of them offering analysis and commentary explaining the recent optimism.

This exchange-traded fund invests in oil futures and oil-related contracts, seeking to approximately match the price performance of West Texas Intermediate light sweet crude. In the first half of 2008, the fund was creating huge returns for investors as oil prices skyrocketed, but demand has plummeted since then.

The huge slide in oil prices this year has caused greatly reduced share prices for U.S. Oil. Ditto that for virtually every other energy-related stock, including Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), and Transocean (NYSE:RIG). Although forecasts coming from companies such as ExxonMobil (NYSE:XOM) predict long-term bullish oil prices, 2009 may not be so pretty, and investors have given their opinion accordingly.

But with producers such as EnCana (NYSE:ECA) and Chesapeake Energy (NYSE:CHK) responding to lower oil prices by cutting budgets for 2009, reduced supply and OPEC production cuts have many believing that prices will rise again, especially given continued demand from emerging countries. It may take some time for energy prices to turn around, but long-term fundamentals driving oil prices appear bullish to many CAPS investors, and more than 83% of those rating United States Oil are bullish on the fund today.

To see what the very best CAPS analysts are saying now about United States Oil -- as well as other winning stocks they are picking -- head on over to CAPS and have a look.

More Foolishness:

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool’s own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Dave Mock recently upgraded his New Year's resolution to include more afternoon naps. He owns shares of ExxonMobil. Chesapeake Energy is an Inside Value pick. The Fool's disclosure policy is committed to giving up its Slurpee addiction next year.

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Stocks Mentioned

United States Oil Fund LP Stock Quote
United States Oil Fund LP
$74.32 (1.18%) $0.87
Ovintiv Inc. Stock Quote
Ovintiv Inc.
$48.39 (1.98%) $0.94
Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
$90.57 (0.95%) $0.85
Transocean Ltd. Stock Quote
Transocean Ltd.
$3.54 (1.72%) $0.06
Schlumberger Limited Stock Quote
Schlumberger Limited
$34.92 (-0.20%) $0.07
Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
Halliburton Company Stock Quote
Halliburton Company
$28.41 (0.35%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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