Back in November I discussed what I considered at the time to be cheap oil stocks. Since then, the picks are up 30% to 50%.
But these stocks are still depressed.
So much so that shares of Exxon Mobil Corp. (NYSE: XOM), up 43% since I covered it in November, is trading at just 0.8 book value per share.
In other words, you can buy all of XOM’s stock at a 20% discount compared to what an accountant would say the company is worth if you showed up with a couple of railcars full of cash to buy it.
That’s what I mean when I say oil stocks are “cheap.”
Meanwhile, oil prices have gone from under $40 a barrel the past five months or so to over $50 a barrel. So that begs the question of whether there are any cheap oil stocks left.
Yes, there are still huge values left. And that includes all of the major companies. But there are a lot of other lesser-known names out there as well, and that’s important to keep in mind.
When you see a sector that’s as downtrodden and beaten up as oil stocks and the energy sector in general — oil being the old-school energy sector — you’ll find a lot of them still at multi-year lows.
You can pick them up here with the idea in mind that we’re at the beginning of a new cycle for oil prices. And that’s exactly what we’ll discuss in my video today: three oil stocks that are cheaply priced and good values in the current environment.
So check out my short video on cheap oil stocks and let me know in the comments if there are any names I don’t mention that you’re considering.
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