Bears Wrong on These Energy Stocks, Buy Them: Halliburton Company (HAL) and More

And for the “socially responsible” investors, Suncor has put in place technologies that have cut environmental pollution. It has also invested in wind farms that provide clean energy aimed at offsetting the high carbon emission. These investments also may make the company less of a regulatory target, which is important in gaining access to the Canadian oil sands pipeline. Currently, the oil sands have been struggling from excess capacity, so there will have to be a bit of rationing.

Conclusion

Despite their headwinds, Suncor and Halliburton are both leaders in their fields. They are also reasonably priced at 9.6x and 10.8x forward earnigns, respectively. Suncor is forecasted for a growth rate of 6.8% versus 14.5% for Halliburton. To hedge against Suncor’s sluggishness, I recommend a high upside company like Chesapeake Energy Corporation (NYSE:CHK). This leading natural gas producer just booted their CEO and have been appropriately selling off assets to pay down the debt. At a price-to-book ratio of 0.9x, the stock is incredibly cheap and could unlock value through diversting plays to more capital-rich producers. Together, these three comapnies provide growth, momentum, and value.

The article Bears Wrong on These Energy Stocks, Buy Them originally appeared on Fool.com and is written by David Gould.

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