No stock group was more beaten down because of the Coronavirus than the oil patch (airlines was a close second). So as stocks are rebounding it is not surprising that oil is soaring above the crowd.

Let’s take a look at whether this is a good time to add the likes of Chevron (CVX), Total S.A. (TOT), Exxon Mobil (XOM), ConocoPhillips (COP) and EOG Resources (EOG) to your portfolio.

Exxon Mobil (XOM)

Oil stocks are gradually emerging from their 52-week lows. XOM is the perfect example of this phenomenon. Investors still have the opportunity to scoop up XOM and other oil stocks at bargain basement prices following the sector-wide dip.

XOM has a high forecast of $70, which is still below its pre-selloff trading price. This bellwether stock is an industry leader poised for a bull run as the oil industry regains strength.

Chevron (CVX)

If you are looking for an oil play with a foothold in nearly every market, consider the merits of CVX. This oil and gas powerhouse does just about everything related to petroleum, power and energy. From producing the liquid gold to refining it and even marketing it, CVX does it all.

With annual revenues in excess of $145 billion and production above three million barrels on a daily basis, it is hard for investors to bypass this oil and gas behemoth. The analysts insist CVX has at least 5% upside as their average price target for the stock is $101.27.

When in doubt, consult the POWR Ratings. CVX is ranked third of nearly 100 Energy stocks, highlighted by an A Peer Grade. At the moment, CVX provides a 5.45% dividend yet there is the potential for this payout to be cut considering the considerable reduction in oil prices.

Total S.A. (TOT)

Who would have thought one of the world’s top oil businesses would be based in quasi-socialist France? TOT has emerged as the top-rated Foreign Oil & Gas stock based on POWR Ratings calculations. TOT is especially strong in the Peer Grade POWR Component. If it were not for TOT’s D Industry Rank, the stock would have an even higher POWR Rating.

With nearly 100 years of business history, operations in nearly 140 countries and a high forecast of $48, TOT is quite the tempting oil stock. The icing on the cake is the company’s 6.28% dividend.

Look for TOT to expand its operations with the acquisition of even more utilities. Add in the fact that company leaders are expanding efforts for low-carbon operations/renewable energy and investors have even more reason to establish a position in TOT.

ConocoPhillips (COP)

If you are searching for an oil stock that does more than merely extract the black stuff from the ground, COP is right up your alley. This Houston-based oil business has half a dozen operating segments ranging from exploration to production, refining, marketing, chemicals and beyond.

When reserves and production capacity are added up, COP is the top oil explorer/producer in the world. The company has operations in North America, Europe, Australia and Asia. COP even has a piece of Canada’s valuable oil sand reserves, making it quite the attractive oil play.

The POWR Ratings have COP ranked fourth of nearly 100 stocks in the Energy – Oil & Gas sector, highlighted by its B Peer Grade. Priced at $44, COP has an average analyst price target just under $47 with 15 analysts recommending the stock as a buy, two advising investors to hold and none advising investors to sell.

EOG Resources (EOG)

It Is not often we see a stock chopped down to one-third of its supposed fair trading price in a mere three months. However, this is exactly what occurred to EOG when the stock dropped from $90 to $30 between January and March of 2020.

The top analysts insist EOG has more than 11% upside as their average price target for the stock is nearly $62. Furthermore, there is a high forecast of $83 meaning it is possible EOG will return to its pre-covid price level within a reasonable amount of time.

The POWR Ratings have EOG ranked in the top 20 of the 96 Energy – Oil & Gas stocks. The stock is especially strong when compared to the competition as it has a strong B Peer Grade. EOG recently pinpointed the locations of 4,500 new oil wells likely to turn a profit at $30 per barrel.

(Note that the Reitmeister Total Return newsletter is investing in the Oil Exploration ETF (XOP) as a diversified way to play the oil sector. Shares are up a shocking +31.8% in the first week alone. Learn more about the Reitmeister Total Return newsletter.)

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About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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