Quantcast

Validea's Top Five Energy Stocks Based On David Dreman - 2/11/2018


Shutterstock photo

The following are the top rated Energy stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman . This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.

CENOVUS ENERGY INC ( USA ) ( CVE ) is a mid-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on David Dreman is 84% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP:PASS
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:FAIL
P/E RATIO:PASS
PRICE/CASH FLOW (P/CF) RATIO:PASS
PRICE/BOOK (P/B) VALUE:PASS
PRICE/DIVIDEND (P/D) RATIO:FAIL
CURRENT RATIO:PASS
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:FAIL
LOOK AT THE TOTAL DEBT/EQUITY:FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

MAGELLAN MIDSTREAM PARTNERS, L.P. ( MMP ) is a large-cap growth stock in the Oil Well Services & Equipment industry. The rating according to our strategy based on David Dreman is 79% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Magellan Midstream Partners, L.P. is principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. The Company operates through three segments: refined products, crude oil and marine storage. As of December 31, 2016, its asset portfolio, including the assets of its joint ventures, consisted of its refined products segment, consisting 9,700-mile refined products pipeline system with 53 terminals, as well as 26 independent terminals not connected to its pipeline system and its 1,100-mile ammonia pipeline system; its crude oil segment, consisted of approximately 2,200 miles of crude oil pipelines and storage facilities with an aggregate storage capacity of approximately 26 million barrels, of which 16 million are used for contract storage, and its marine storage segment, consisted of five marine terminals located along coastal waterways with an aggregate storage capacity of approximately 26 million barrels.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP:PASS
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:PASS
P/E RATIO:FAIL
PRICE/CASH FLOW (P/CF) RATIO:FAIL
PRICE/BOOK (P/B) VALUE:FAIL
PRICE/DIVIDEND (P/D) RATIO:PASS
CURRENT RATIO:FAIL
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS
LOOK AT THE TOTAL DEBT/EQUITY:FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

TALLGRASS ENERGY GP LP ( TEGP ) is a mid-cap growth stock in the Oil Well Services & Equipment industry. The rating according to our strategy based on David Dreman is 79% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Tallgrass Energy GP, LP is a limited partnership company, which includes the operations of Tallgrass Equity, LLC (Tallgrass Equity), Tallgrass MLP GP, LLC, Tallgrass Energy Partners, LP ( TEP ), and TEP's subsidiaries. TEP owns, operates, acquires and develops midstream energy assets in North America. TEP's segments include Crude Oil Transportation & Logistics, which is engaged in the ownership and operation of a crude oil pipeline system, and crude oil storage and terminaling facilities; Natural Gas Transportation & Logistics, which is engaged in the ownership and operation of interstate natural gas pipelines and integrated natural gas storage facilities; Processing & Logistics, which is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities, and the provision of water business services to the oil and gas exploration and production industry, and Corporate and Other.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP:PASS
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:PASS
P/E RATIO:FAIL
PRICE/CASH FLOW (P/CF) RATIO:FAIL
PRICE/BOOK (P/B) VALUE:FAIL
PRICE/DIVIDEND (P/D) RATIO:PASS
CURRENT RATIO:FAIL
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS
LOOK AT THE TOTAL DEBT/EQUITY:FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

ALLIANCE HOLDINGS GP, L.P. (AHGP) is a small-cap value stock in the Coal industry. The rating according to our strategy based on David Dreman is 77% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Alliance Holdings GP, L.P. (AHGP) is a limited partnership company. The Company owns directly and indirectly the members' interest in Alliance Resource Management GP, LLC (MGP), the managing general partner of Alliance Resource Partners, L.P. (ARLP). The Company's segments include Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment consists of mining complexes, including Webster County Coal's Dotiki mining complex; Gibson County Coal's mining complex, which includes the Gibson North mine and Gibson South mine; Warrior's mining complex; River View's mining complex and the Hamilton mining complex. The Appalachia segment consists of various operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex. The Mettiki mining complex includes Mettiki Coal (WV)'s Mountain View mine and Mettiki Coal's preparation plant. Other and Corporate segment includes marketing and administrative activities.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP:FAIL
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:PASS
P/E RATIO:PASS
PRICE/CASH FLOW (P/CF) RATIO:PASS
PRICE/BOOK (P/B) VALUE:FAIL
PRICE/DIVIDEND (P/D) RATIO:PASS
CURRENT RATIO:FAIL
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS
LOOK AT THE TOTAL DEBT/EQUITY:PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

HALCON RESOURCES CORP (HK) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on David Dreman is 77% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Halcon Resources Corporation is an independent energy company. The Company is focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company's oil and natural gas assets consist of proved reserves and undeveloped acreage positions in unconventional liquids-rich basins/fields. As of December 31, 2016, the Company had working interests in approximately 116,000 net acres prospective in the Bakken/Three Forks formations in North Dakota. As of February 28, 2017, the Company had 20,901 net acres in the Southern Delaware Basin in Pecos and Reeves Counties, Texas, and the option to acquire up to 15,040 net acres in Ward and Winkler Counties, Texas. As of December 31, 2016, the Company had working interests in approximately 80,500 net acres prospective for the Eagle Ford formation in Brazos, Burleson and Robertson Counties, Texas, with targeted depths ranging from 7,000 feet to 10,000 feet.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP:FAIL
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:PASS
P/E RATIO:PASS
PRICE/CASH FLOW (P/CF) RATIO:PASS
PRICE/BOOK (P/B) VALUE:PASS
PRICE/DIVIDEND (P/D) RATIO:FAIL
CURRENT RATIO:PASS
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:FAIL
LOOK AT THE TOTAL DEBT/EQUITY:FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

Since its inception, Validea's strategy based on David Dreman has returned 114.50% vs. 161.85% for the S&P 500. For more details on this strategy, click here

About David Dreman : Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.

About Validea : Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: USA , CVE , MMP , TEGP , TEP


More from Validea

Subscribe






Validea
Contributor:

Validea

Stock Analysis








Research Brokers before you trade

Want to trade FX?