Energy
6 Top Oil and Gas Stocks Analysts Want You to Buy Now
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It almost seems hard to believe, but the endless drop in oil and oil stocks seems to be finding its way to some form of normalization. Crude closed out the week of February 26 above $32.00 per barrel. Investors looking for bargains in the oil pact were burned relentlessly in 2015. If oil has stabilized — again if — there may be some stock bargains in the top quality survivors.
Before they get excited here, there is a dire warning that investors in the oil patch better understand. Layoffs will only get worse in 2016. Many oil companies are on the verge of bankruptcy, and many more bankruptcies in the sector almost certainly are coming in 2016 and perhaps beyond. Another risk is that the capital markets are largely closed to oil companies at this time.
24/7 Wall St. reviews dozens of analyst research reports each day of the week. That ends up being hundreds each week. After looking at all of these Buy, Sell and Hold ratings, there are always some interesting calls that need to be highlighted. Most analyst calls in the oil patch and energy sector are still downgrades or come with lower earnings and price target projections.
We are starting to see a few calls that are standing out with Buy ratings again. This is not just analysts defending a stock on the way down with unrealistic valuations. Some analysts are starting to declare bottoms and are seeing serious value for those investors who can look out in 2017 or beyond. Before buying into the value or bottom notion blindly, just keep in mind that these calls all may look silly if oil slides back toward $25 (or worse). These were some of the most solid energy sector calls seen in the week of February 26.
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