With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at Statoil
Forecasts on Statoil
|Median Target Stock Price||$27.75|
|2011 EPS Estimate||$2.78|
|2012 EPS Estimate||$2.79|
|Expected Annual Earnings Growth, Next 5 Years||8%|
Source: Yahoo! Finance.
Will Statoil keep rising in 2012?
Analysts expect Statoil to see only modest growth this year. The target price for the stock is only about 10% higher than its current share price, and a single penny of earnings growth doesn't exactly raise confidence. But as always in energy, the big determinant of success will be what happens to oil and gas prices in 2012.
So far, at least, that's a mixed picture. On the gas front, Range Resources
But oil remains above the $100 per barrel mark, and indications suggest that it could stay there for a while. Statoil will benefit from a new discovery in the Barents Sea off the northern coast of Norway, along with Italy's Eni
All in all, Statoil looks like it's in a good position going forward. The same geopolitical issues that the rest of the industry faces also apply to Statoil, but if there aren't major disruptions in 2012, the company should enjoy a good year.
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Click here to add Statoil to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Ultra Petroleum. Motley Fool newsletter services have recommended buying shares of Range Resources, Ultra Petroleum, Statoil, and Chesapeake Energy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.