Actionable insights straight to your inbox

Analysts Like these Oil & Gas Refiners, Despite What the Market May Think

Wednesday’s trading session turned out to be a decent one for oil and gas refiners and marketers, as most companies posted gains by the closing bell. Still, with an average earnings multiple
Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.
Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.

Wednesday’s trading session turned out to be a decent one for oil and gas refiners and marketers, as most companies posted gains by the closing bell.

Still, with an average earnings multiple at 14.40 for that sector of the energy industry, there are clearly a lot of stocks that are getting top-heavy, and investors might want to have a look at some of the firms who for some reason seem to be getting left behind by the market.

The following five companies were selected according to the following criteria:

  • A below-average P/E ratio

  • Average analyst recommendation of “buy or better”

  • Positive 2014 performance

 

Marathon Petroleum Corporation (MPC)

Market-Cap / Price: $28.26 billion / $94.50

P/E Ratio: 14.27

2014 Returns: +3.53

 

Phillips 66 (PSX)

Market-Cap / Price: $47.88 billion / $80

P/E Ratio: 13.31

2014 Returns: +4.28 percent

 

Northern Tier Energy LP (NTI)

Market-Cap / Price: $2.51 billion / $27.34

P/E Ratio:  11.20

2014 Returns: +13.02 percent

 

Valero Energy Corporation (VLO)

Market-Cap / Price: $29.64 billion / $55.29

P/E Ratio: 11.15

2014 Returns: +10.27 percent

 

Sinopec Shanghai Petrochemical Co. Ltd. ($SHI)

Market-Cap / Price: $2.16 billion / $30.11

P/E Ratio: 10.60

2014 Returns: +5.50 percent