With crude oil trading around $80/barrel, share prices of exploration and production (E&P) companies have taken a hit. Many of these stocks are down significantly in the last three months.
In certain ways, I don't find this too surprising, given that some of the companies were merely riding the boom in oil prices rather than exhibiting sound fundamental growth. However, the latest slide in crude oil prices seems to have had a blanket effect on E&P stocks -- even on those that look fundamentally sound. Discerning investors should see opportunity here to accumulate shares, as chances of a rebound in these stocks seem high.
- Add Marathon Oil to your watchlist.
- Add Continental Resources to your watchlist.
- Add EOG Resources to your watchlist.
The Foolish bottom line
E&P stocks have taken a hit. But I believe the time is right for some accumulation to take place. However, if you're looking for more ideas, The Motley Fool has created a new special oil report titled "3 Stocks for $100 Oil," which you can download today, absolutely free.
Fool contributor Isac Simon does not own shares of any of the companies mentioned in this article. The Motley Fool has a disclosure policy.