The Oil Companies are Expected to Do Big Things

Oil- Black Gold

We are talking big names like Exxon Mobil Corporation (NYSE:XOM), ConocoPhillips (NYSE:COP) and Chevron Corporation (NYSE:CVX) of oil companies that are expected to do big things.  No, we are not talking about making a big spill like BP, we are talking about being expected to post big earnings growth next year.  These stocks are good candidates for growth plays.

Each of those companies mentioned is projected for double digit growth next year, and not “just in the teens” type of growth…  45%, 67% and 91% earnings growth projections!  Those are big number projections folks.  But don’t let those numbers do the speaking alone, let’s look a little further into the value of these companies.

Currently, each company has a price/earnings ratio less than 20, which is indicative that the company stock is cheap.  Likewise, the price/sales ratios for each company is less than 1.5, indicating that the price of the stock is cheap compared to the sales of the company. 

With the stock market currently in free fall today, consider waiting until the market gains a little positive traction and then maybe look to pounce on some oil shares.  Fine tuning your purchase price might make a big difference in the bottom line.  Buy when people are selling.

Symbol  
Company Name  Next Yr Growth Rate  P/E Ratio: Current  Price/Sales Ratio
XOM Exxon Mobil Corp 45.5 12.5 0.97
CVX Chevron Corp 90.88 10.1 0.86
COP ConocoPhillips 66.88 8.8 0.49

 

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