According To Wall Street, These Are The Best Oil Stocks To Buy!

| February 23, 2015 | 0 Comments

Analyst ActionWall Street Says These Are The Best Oil Stocks To Buy!

It’s time for another look at compelling analyst upgrades and downgrades.

In case you’re unaware, analysts at the biggest banks and investment firms on Wall Street provide research on a multitude of natural resource companies.  It’s not always the case, but most times a notable bullish change in a respected analyst’s outlook can have a significant influence on a company’s share price.

Of course, their ratings changes aren’t always positive…

When an analyst applies a big downgrade, shares can lose ground quickly.

After all, it’s not a great idea to be fully invested in a company that’s falling out of favor with Wall Street.  At the very least, a downgrade can slow buying activity, which opens the door to lower prices.

Either way, it’s important to keep an eye on the analyst activity.  Doing so can give you a substantial leg up on the market.

Here are the best oil stocks to buy according to Wall Street… 

Concho Resources (CXO)-  The Permian producer was initiated with an “outperform” rating and $130.00 price target at Wolfe Research.  That’s an 11% premium to Friday’s closing price of $117.

Halliburton (HAL)-  After plummeting to $38 a share in early 2015, analysts at BMO Capital Markets initiated the oil services heavyweight with an “outperform” rating and $53 price target last week.  That target represents a 23% premium to Friday’s closing price of $43.

Rosetta Resources (ROSE)-  Analysts at Global Hunter Securities upgraded this Texas producer to “buy” from “neutral” with a $31 price target- a 34% premium to current prices.

Weatherford (WFT)-  Here’s another oil services provider getting the green light from BMO Capital Markets.  Analysts initiated the company last week with an “outperform” rating and a $16 price target- a 33% premium to current prices.

Devon Energy (DVN)-  This prudently managed US/Canadian oil producer was reiterated a “buy” at Jefferies Group with a $75 price target.  What’s more, Deutsche Bank boosted their price target on the name from $63 to $70.  With shares trading at $63, these targets represent a premium of at least 11%.

Marathon Petroleum (MPC)-  Here’s a refiner that has really been on a roll the past few weeks.  MPC has exploded from $75 to $105 since mid-January- a 40% jump.  Despite the overbought nature, analysts at Deutsche Bank think shares have further to run.  Analysts reiterated their “buy” rating and boosted their price target to $118 last week.

Conoco Phillips (COP)-  The world’s largest independent exploration and production company had their price target upped to $80 from $75 at Oppenheimer.  With shares closing at $67 on Friday, Oppenheimer’s target represents 20% profit potential.

There you have it…

What you see above are the most captivating, and potentially profitable, ratings changes I came across over the past week.  Shares prices may already be reacting to the ratings and price target adjustments.

Now remember…

Just because Wall Street analysts believe the companies above are the best oil stocks to buy, doesn’t mean you dump all your money into them.

Do your own due diligence and always use correct position sizing and risk control measures in your trades.

Until Next Time,

Justin Bennett

BIO:  Justin Bennett is the head commodity research analyst at Commoditytradingresearch.com.  With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them.  Sign up for our free reports and commodity newsletter at https://commoditytradingresearch.com/free-sign-up.

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Category: Natural Resource Stocks

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.