Crude oil prices are up +16% in 6 weeks. Dividend investors
continue to seek out low risk, high yield stock picks. So you
would think that the major crude oil and energy stocks are good
Wrong. The fact of the matter is that as we enter another
earnings season, the numbers just aren't there for many crude oil
blue chips. Even with oil prices improving right now, the ship
has sailed on Q3 and those profits are all over but the counting.
And as many investors will see soon, those profits may not be as
healthy as many crude oil stocks would like.
Here are 10 major energy stocks that are suffering
right now and should be cut loose before earnings.
Exxon Mobil Corp. (
Global oil and gas giant
Exxon Mobil Corp.
) has had a rough year in 2010. Since January, the stock
has dropped -8.1%, compared to small gains by the broader
markets. Over the past 12 months, the stock has dropped a
total of -5.9% as well. Despite a small rally in September,
XOM has still not been able to make up for its poor performance
earlier in the year. Analysts have scaled back on earnings
estimates this quarter, projecting EPS of $1.40, after an actual
EPS of $1.60 last quarter.
) is an integrated oil and gas company. Year-to-date, PBR
stock has declined -22.9%. With a current stock price of
$36.71, Petrobras is far from its 52-week high of $53.46 from
January. While Petrobras does pay a dividend to its
shareholders, the .4% yield is not exciting anyone. While
PBR made some progress in September, investors should be wary of
this energy stock because of its yearlong performance.
BP PLC ADR (
Since the well-known oil spill in the Gulf Coast earlier this
) has been reeling. Over the past 10 months, the stock has
dropped -28.7%. BP stock dropped an extraordinary -50.7%
from late April to early July, thanks to the Gulf disaster.
While the stock has regained since mid summer, it is still well
off its 52-week high of $62.38, with a current stock price of
$41.41. In its last income statement, BP reported a net
profit margin of -22.5%, which is surely causing headaches for
Total S.A. ADS (
Operating in over 130 countries,
) is an integrated oil and gas company based in France.
Since January, Total's stock price has slipped nearly -19%.
After an EPS of $1.68 last quarter, experts are predicting a down
quarter for the energy stock and have limited EPS estimates to
$1.52. TOT currently trades at $51.83, making this a pricey
energy stock that should be avoided based on its yearly
Eni S.p.A. ADR (
Headquartered in Rome,
) is involved with oil and gas, power generation petrochemicals,
and engineering. This international company has also
experienced a dismal 2010, as the stock has slid -14.2% since
January. Likewise, Eni has missed three of its last four
earnings estimates. The energy stock is currently trading
at $43.39, which is almost $12 off its 52-week high from
January. If its past earnings reports and stock performance
are any indication, Eni is an energy stock worth dumping
Statoil ASA ADR (
) is an integrated energy company that was formerly known as
StatoilHydro ASA. The company operates in more than 40
countries and is based in Norway. 2010 has been a
forgettable year for this energy stock, which has fallen -14.6%
since January. STO is trading just above its 52-week low of
$18.39, with a stock price of $21.25. Like other stocks on
this list, STO made some progress in September, but is still in
the red for the year, and should be avoided when looking for
energy stocks to buy.
Suncor Energy Inc. (
Based in Calgary,
Suncor Energy Inc.
) is another integrated energy company that makes the list.
SU stock has had a bumpy ride in 2010, and is down -6% over the
past 10 months. While the stock saw rallies in April, June,
August and September, it has been unable to sustain any
momentum. Perhaps prepping for another letdown, analysts
have scaled back earnings estimates to $0.41 after an EPS of
$0.49 last quarter. If you own Suncor Energy stock, now
might be the time to sell based on its volatility and
Imperial Oil Ltd. (
Imperial Oil Ltd.
) is involved in the exploration, production and sale of crude
oil and natural gas. While IMO has not performed as poorly
as other stocks on this list, it still has seen returns of -1.7%
year-to-date. Shareholders can not be thrilled by the fact
that IMO has missed earnings estimates for four consecutive
quarters, including a miss of -19.4% last quarter. Its
current stock price of $37.98 is slightly higher than its 52-week
low of $35.18.
Devon Energy Corp. (
Independent energy company
Devon Energy Corp.
) is engaged in the exploration, development and production of
oil and natural gas. Year-to-date, the energy stock has
slipped -12.3%, compared to modest gains by the broader
markets. Like other stocks on this list, analysts have cut
back on earnings estimates this quarter. Experts project
EPS of $1.36 this quarter compared to an actual EPS of $1.53 last
quarter. Trading at $64.41, DVN is an expensive energy
stock whose performance has not justified its purchase.
Anadarko Petroleum Corp. (
Headquartered in Texas,
Anadarko Petroleum Corp.
) rounds out the list of energy stocks to sell. Since
January, shareholders have watched this stock fall -10.1%.
While APC has rallied over the past few weeks, it is still
reeling from a sharp July decline. A net profit margin of
-1.1% last quarter is just another unsavory detail about this
stock. Unless APC can continue to rally past its pre-July
levels, consider selling this energy stock.
As of this writing, Louis Navellier did not own a position
in any of the stocks named here.
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