WHO WOULD EVER BUY AN OIL STOCK???
This Tiger Cub Giant Is Betting On Banks And Tech Stocks In The Recovery
The first two months of the third quarter were the best months for D1 Capital Partners' public portfolio since inception, that's according to a copy of the firm's August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1's public portfolio returned 20.1% gross Read More
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).
Of course, cheap things can get a lot cheaper. Nonetheless, the long-term track record of buying cheap stuff is pretty clear (or here).
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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