While the price of oil has skyrocketed over the last year, natural gas has not seen such a dramatic growth. That means that there are still opportunities for investors looking to get into energy stocks. One such stock is ConocoPhillips.
ConocoPhillips trades around $84 a share which is only about 7 or 8 times 2008 estimated earnings. Among the super-major energy companies, Conoco has the lowest P/E and is the best U.S. natural gas play due to its acquisition of Burlington Resources.
Conoco has a lot of upwards earnings potential with oil at $100 a barrel and natural gas at $10 per Mcf (thousand cubic feet). If these prices hold, Conoco could ear n$14 a share next year, meaning that it is trading at 9 to 10 times earnings. That could drive the stock up to $120 to $140.
{ 0 comments… add one now }