Stock Market Overvalued? Not These Stocks: ConocoPhillips (COP), Halliburton Company (HAL)

The big driver here is that the company expects North American margins to rebound in 2013. That’s all well and good, but the energy game is a global one. Halliburton’s biggest asset is its ability to innovate the oil and gas production business, and monetize that innovation wherever energy markets may be. The Fool actually has a special report on Halliburton you can find here.

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4. National-Oilwell Varco, Inc. (NYSE:NOV)

Source: Yahoo! Finance

Multiple Fools in Fooldom like National Oilwell Varco right now. Its yield leaves a little to be desired, but the fundamental story at this company is one for the long term. Oil production is getting increasingly complicated, and just as with Halliburton, National Oilwell Varco provides services and equipment that will only grow more relevant as time goes on.

Its business is in great shape, as all three segments produced year-over-year gains, en route to beating earnings expectations. Its debt to equity ratio is significantly lower than other service companies like Halliburton and Schlumberger, and its operating margin is among the highest in its peer group. It is hard to ignore fundamentals like that.

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5. Energy Transfer Partners LP (NYSE:ETP)

Source: Yahoo! Finance

Energy Transfer Partners is a midstream master limited partnership which means two things to investors: a high distribution yield and extra paperwork come tax time. Energy Transfer’s P/E is one of the best in the industry, largely because its share price has lagged over the past few years because the partnership has not increased its distribution since 2008.

Energy Transfer is coming off a great fourth quarter, however, and many feel that a distribution increase is not far off. When that happens, this stock will rise. In fact, it is already up 4.8% this year, far outpacing 2012’s 7.18% drop. In the meantime, management is shoring up the fundamentals and increasing the percentage of revenue generated from fixed-fee contracts, mitigating the impact of commodity risk.

The article Stock Market Overvalued? Not These Stocks! originally appeared on Fool.com and is written by Aimee Duffy.

Fool contributor Aimee Duffy owns shares of HollyFrontier. Click here to see her holdings and a short bio. If you have the energy, follow her on Twitter, where she goes by @TMFDuffy. The Motley Fool recommends Halliburton and National Oilwell Varco. The Motley Fool owns shares of National Oilwell Varco.

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