While oil has retreated about 10% since rising just past the $50 mark, one thing has become pretty evident. While most Wall Street analysts and pundits are reasonably positive on the energy sector as a whole, many seem to think that 2017 could be the year when crude shows a price spike from current levels. After an almost 100% jump from the February lows, it’s no surprise to see a little retracement now.

A new research report, Deutsche Bank seems in step with many on Wall Street and feels that most of the attention will be focused on the Permian and Anadarko basins. They also have three stocks they like now to buy in front of their second-quarter earnings results. All three are rated Buy at Deutsche Bank.

Continental Resources

This company has a very large exposure to crude oil. Continental Resources Inc. (NYSE: CLR) is a top 10 independent oil producer in the United States and is the largest leaseholder and one of the largest producers in the nation’s premier oil field, the Bakken play of North Dakota and Montana. The company also has significant positions in Oklahoma, including its SCOOP Woodford and SCOOP Springer discoveries and the Northwest Cana play.

Continental was one of the companies that Goldman Sachs thought could be able to thrive even with oil at the $35 level. Should it push back toward $50 and higher in 2017, it seems that the upside could be dramatic.

Deutsche Bank expects the company to announce four new STACK well results, and although the firm expects volumes to decline from the first quarter, it also expects the company to comment on additional rigs being added for fiscal 2017.

The Deutsche Bank price target for the stock is $54. The Wall Street consensus target is set at $47.58. The shares closed Wednesday at $46.39.

Encana

This top stock has been absolutely mauled, down a gigantic 84% since the summer of 2014. Encana Corp. (NYSE: ECA) engages in the development, exploration, production and marketing of natural gas, oil and natural gas liquids (NGLs) in Canada and the United States. It owns interests in plays such as the Montney in northern British Columbia and northwest Alberta, Duvernay in west central Alberta, Clearwater in central and southern Alberta, Deep Panuke in offshore Nova Scotia, Cadomin/Doig in northeast British Columbia, Horn River in northeast British Columbia and Granite Wash/Doig in northwest Alberta.

Encana is a favorite at many of the Wall Street firms we cover, and it could be a big home run for aggressive accounts. The Deutsche Bank team notes that while the wildfires in Canada impeded some production, they see Canadian NGL prices going higher. They also expect liquid volumes from the core four should grow quarter over quarter due to a 14 well Permian Basin pad coming online and processing facilities in the Duvernay also coming into service last quarter.

Deutsche Bank has an $11 price target, and the consensus estimate is $9.32. The shares closed most recently at $7.98.

Parsley Energy

This is another smaller capitalization stock for aggressive investors to consider. Parsley Energy Inc. (NYSE: PE) is an independent oil and natural gas company that engages in the acquisition, development, production, exploration and sale of crude oil and natural gas properties in the Permian Basin, located in West Texas and Southeastern New Mexico. As of December 31, 2015, its acreage position consisted of 110,967 net acres, including 84,441 net acres in the Midland Basin and 26,526 net acres in the Delaware Basin. Estimated proved oil and natural gas reserves were 123.8 MMBoe.

The company posted solid first-quarter results that beat expectations. In addition the company’s wells in the Southern Delaware are tracking above expectations, and results from Midland are also looking very impressive. Deutsche Bank sees second-quarter volumes increasing 15% over the first quarter.

The $32 Deutsche Bank price target compares to the consensus target of $31.79 and Wednesday’s close at $27.98.

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While these smaller companies are more suited for aggressive accounts, they are all well liked on Wall Street and could surprise to the upside when they report.

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