European Embargo Of Iranian Oil Will Make You Money ($DVN $EOG $HAL $NOV $OXY)
What we try to teach here at Turn Key Oil is to follow market trends and factors that impact the prices of oil & gas. Oil being the primary focus of this article is directly influenced by accessibility, emerging markets and geopolitical events to name a few. In this case the European sovereign debt problems drove prices down but now the European embargo of Iranian oil is moving oil prices which in turn will likely move these stocks.
Devon Energy Corporation (DVN)
Fundamentally, Devon has several positives. The company has a forward PE of 10.25. Devon pays a dividend with a yield of 1.38%. Devon’s expected EPS growth rate for next year is 30%. The company’s profit margins are improving. The current net profit margin is 18.29%.
EOG Resources, Inc. (EOG)
Fundamentally, EOG has several positives. The company has a forward PE of 16.98. EOG pays a dividend with a yield of 0.71%. EOG’s expected EPS growth rate for next five years is 16.41%. The current net profit margin is 11.61%. EOG’s strength comes from its growth in sales and EPS. EOG has quarter over quarter sales and EPS growth rates of 48% and 132% respectively. EOG’s PEG ratio is 1.22.
Halliburton Company (HAL)
Fundamentally, Halliburton has some positives. The company has a forward PE of 8.42. Halliburton pays a dividend with a yield of 1.22%. Halliburton’s expected EPS growth rate for next five years is 20%. The current net profit margin is 11.87%. Halliburton has quarter over quarter sales and EPS growth rates of 30% and 23% respectively. Halliburton’s PEG ratio is .43.
Bernstein upgraded Halliburton to Outperform saying, “Buy quality when there’s blood in the streets,” adding the deep-water service market should “double from 2011-14 while gas drilling is surging in the Middle East and Asia.”
National Oilwell Varco, Inc. (NOV)
The company has many fundamental positives. NOV has a PEG Ratio of 1, a forward P/E ratio of 10.09 and quarter over quarter EPS and sales growth rates are 47.85% and 36.78% respectively. NOV has a price to book ratio of 1.57.
The stock recently bounced off support at the $60 mark and broke through resistance at the 50 sma at the beginning of July. RBC Capital Markets reiterated their Outperform rating on the stock on July 12th and upped their price target to $75.
Occidental Petroleum Corporation (OXY)
The company has many fundamental positives. The stock has a robust net profit margin of 26.02%. Occidental has a forward P/E ratio of 10.49 and an EPS growth rate of 11.78% for next five years. Occidental has a PEG ratio of 0.88. Occidental has a price to book ratio of 1.81.
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