Oil Stocks: A Real-Time Case Study in Value Investing
I just took a snapshot of the front page of Yahoo Finance, CNBC.com, and Bloomberg.com:
WHO WOULD EVER BUY AN OIL STOCK???
Energy companies as a whole have been blowing up left and right and now sell at a decent discount to the market.
Oil specific names are getting killed and they are also getting cheap (at least on an enterprise multiple basis).
Here are the Top 10 cheapest energy names that are at least $2B in market cap (many have a large exposure to oil):
|Ticker||Name||EBIT/TEV Yield||Percentile Cheapness Rank|
|PBF US Equity||PBF ENERGY INC-CLASS A||22.26%||99.90%|
|VLO US Equity||VALERO ENERGY CORP||20.98%||99.80%|
|RIG US Equity||TRANSOCEAN LTD||18.16%||99.70%|
|SM US Equity||SM ENERGY CO||17.22%||99.50%|
|OIS US Equity||OIL STATES INTERNATIONAL INC||16.72%||99.40%|
|HP US Equity||HELMERICH & PAYNE||16.29%||99.20%|
|IOC US Equity||INTEROIL CORP||15.61%||98.70%|
|WNR US Equity||WESTERN REFINING INC||14.85%||98.10%|
|OXY US Equity||OCCIDENTAL PETROLEUM CORP||14.17%||97.70%|
|NOV US Equity||NATIONAL OILWELL VARCO INC||14.13%||97.70%|
If you’re a value investor, this should be exciting–not scary…
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Definitions of common statistics used in our analysis are available here (towards the bottom)