Energy
Deutsche Bank Has 4 Blue Chip Dividend Oil Stocks With Big Upside Potential
Published:
Last Updated:
Every day it seems like the same thing: falling oil prices and quality stocks getting murdered. Yet smart investors who have been around the Wall Street block, not attending their first rodeo, know that this is the best buying opportunity in 10 years. The question is which stocks do you buy? The answer is most likely big industry leaders who are prepared to fight through the downturn.
In a new research report, the Deutsche Bank analysts are clear where they stand. They maintain that while the timing of the recovery remains an unknown, they are now cautiously optimistic and see some small improvement in underlying crude balances, perhaps starting as early as next quarter.
While the analysts lower the prices on many of the stocks in their coverage universe, four look very attractive for patient investors now, and they actually raised targets on two. All four are rated Buy at Deutsche Bank.
Chevron
This is very solid story for investors looking to stay long the energy sector. Chevron Corp. (NYSE: CVX) is a U.S.-based integrated oil and gas company, with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals. The company sports a sizable dividend and has a solid place in the sector when it comes to natural gas. Some Wall Street analysts estimate Chevron will have a compound annual growth rate of over 5% for the next five years, and the stock trades at a modest valuation discount to some of its mega-cap peers.
Chevron management is aggressively pursuing cost saving initiatives and has already completed over 2,200 supplier engagements, with more in progress. Cost savings and improving investor sentiment may be a key as the mega-cap integrated has struggled mightily over the past year. While many on Wall Street concede that the oil market could be oversupplied for longer than most thought, massive overseas demand and production slowdowns should help pricing this year.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
