3 Hot Oil And Gas Stocks To Consider Along With Anadarko
By Cris Frangold:
With holdings in oil and gas exploration and production, Anadarko Petroleum (APC) is diversified in natural gas, crude oil, and natural gas liquids. However, Anadarko is heavily investing in the liquid-heavy aspects of its holdings, a useful strategy for the present oil and gas price structure. Anadarko's exploration strategy has proved successful though riskier than its peers. Its recent levels of profitability and valuation have justified much of the excess debt that it has incurred in exploration and test well creation.I recommend a 1-year and 5-year buy on Anadarko shares. The recent downward trend in share price, hovering around $70, makes it a more accessible investment and increases the overall earnings potential for positions initiated in the second quarter 2012.
Valuation
Anadarko's 52-week range spans $57 to $89, and a recent breakdown in price (around April 2012) leaves this stock undervalued. A reasonable 12-month consensus forecasts a $95 target.Complete Story »
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