Analyst Has 3 Oil Stocks to Buy and 2 to Sell Now

Energy

Published: February 18, 2015 2:10 pm

Last Updated: February 18, 2015 4:12 pm

BMO Capital Markets has just released its coverage for a group of major oil and gas stocks. Recently, oil has made a slight recovery after having fallen over 50% from its highs this past summer. This bump we are currently seeing might signal that a bottom has been found but it also may very well be a brief bounce before it turns lower.

In its analysis, BMO offered three major stocks to buy and two to sell.

Weatherford International PLC (NYSE: WFT) was initiated with an Outperform rating and price target of $16. This rating can be attributed to a recent earnings beat, as well as what seems like a recovery in oil prices. Shares of Weatherford were relatively flat at $12.54 in the second half of the trading day Wednesday. The stock has a consensus analyst price target of $13.57 and a 52-week trading range of $9.40 to $24.88.

Schlumberger Ltd. (NYSE: SLB) was initiated with an Outperform rating and price target of $105. Despite falling oil prices over the past eight months, Schlumberger has been one of the more resilient companies. If oil prices make a handy recovery, Schlumberger would be in one of the best positions to take advantage. Shares of Schlumberger were down 1% at $87.82. The consensus analyst price target is $92.55, and the 52-week trading range is $75.60 to $118.76.

ALSO READ: With Oil Cut in Half, Will Any of the Majors Cut Dividends?

Patterson-UTI Energy Inc. (NASDAQ: PTEN) was initiated with an Outperform rating and price target of $23. This rating was driven by a bullish view of U.S. land activity in 2016. The firm expects land activity to increase by 60% off the projected third-quarter trough. Patterson’s land fleet is also considered underappreciated. Patterson shares were down 1% at $18.30. The consensus price target is $20.65. The 52-week trading range is $13.30 to $38.43.

Transocean Ltd. (NYSE: RIG) was initiated with an Underperform rating and price target of $16. Being negative on offshore drilling is somewhat of a consensus view for most analysts. However, the firm believes that the duration of the downturn is not fully reflected in the stock. Shares of Transocean were down over 2% at $17.88, compared with a consensus analyst price target of $17.52. Shares have traded in a range of $14.50 to $46.12 in the past year.

National Oilwell Varco Inc. (NYSE: NOV) was initiated with an Underperform rating and price target of $52. As the firm had previously stated, there is a dim outlook for offshore drilling, and this should look to continue for some time as analysts are unsure when the downturn will end. National Oilwell Varco shares were up 0.6% at $55.48. The consensus price target is $57.37, within the 52-week trading range of $49.25 to $86.55.

ALSO READ: Merrill Lynch Boosts Outlook on Apache

It’s Your Money, Your Future—Own It (sponsor)

Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.

If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.