5 Oil Stocks Set to Make a Comeback

Median Target: $45.00
Current Price: $36.24
Projected Upside: 24%
Data as of market close 8/19

Though much maligned after the recent oil spill, BP plc (NYSE: BP[1]) has bottomed out according to most estimates. Of the seven analysts placing targets on BP stock, the lowest projected price is $40 per share according to Thomson/First Call. Of course, with open liability ahead, the oil company could see some downward revisions to price targets, and shares could slide some more after giving up -37% year-to-date. But with over a century of oil and gas exploration under its belt and operations around the world, there is also a very good chance BP could be on the way up. BP stock has already bounced back over +20% since July.

Median Price Target: $92.50
Current Price: $75.84
Projected Upside: 22%
Data as of market close 8/19

On Monday, Chevron (NYSE: CVX[3]) announced a “significant” offshore natural gas discovery in Western Australia[4], which gave the stock a much-needed boost and truly couldn’t have come at a better time. The company boasts a diverse internal portfolio, engaging in every aspect of the oil, gas and geothermal energy industries: exploration and production, refining, marketing and transport, chemicals manufacturing, power generation and more — but its natural gas exploration may offer summer salvation. The last three years have seen profits fall steadily. And although it had a summer slump as well, its +10% increase since July could herald better times ahead for the stock if conditions improve.

Median Price Target: $64.00
Current Price: $54.71
Projected Upside: 17%
Data as of market close 8/19

An international energy corporation that’s expanding heavily into refining and natural gas, Conoco Phillips (NYSE: COP[5]) is something of a curiosity of late. Share prices have suffered recently in August, but at +7.0% year-to-date against the Dow and S&P 500, it remains well above its competition in 2010. Shares of ConocoPhillips mostly have been in pullback mode for the month so far, and that provides investors a great opportunity to buy in at a bargain, if the consensus target of $64 for COP stock holds accurate.

Median Price Target: $77.50
Current Price: $59.29
Projected Upside: 31%
Data as of market close 8/19

With the Gulf spill touching off memories of its own Alaskan misadventures, Exxon suffered a rough summer even without spilling anything. Exxon Mobil Corp (NYSE: XOM[6]) saw its stock drop heavily since May, and it hasn’t quite been able to rebound to date. Its lowest analyst target, according to Thomson/First Call, rests at $48, well under its current price. As one of the largest publically traded companies in the world, Exxon shouldn’t stay down for long, even at -13% year-to-date against the Dow and S&P 500. Its daily oil production tops every other oil company, and the world needs oil. Most analysts agree it’s a stock to hold on to, with a hefty 31% upside projected for XOM stock.

Median Price Target: $63.00
Current Price: $48.81
Projected Upside: 29%
Data as of market close 8/19

A French oil company with businesses covering the entire oil and gas chain — from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing and international crude oil and product trading — Total (NYSE: TOT[7]) is one stock that’s offering purchase potential at the bottom. Down -23% against the Dow and S&P 500, it’s been having trouble moving out of its current drop year-to-date in the wake of euro zone trouble. Several analysts, such as Citigroup, are encouraging a “Buy,” and of seven Thomson/First Call analysts that noted its price target, even the lowest is at $56.50, which is well ahead of the price of this France-based oil stock.

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