2 Energy Stocks to Buy Despite Headwinds: Halliburton Company (HAL) and More

The company also expects to spend more than $1.2 billion in expanding oil sands activities in Base and Situ for long-term growth. And due to the company’s cost efficiency as well as the reduced spending in 2012, it has opened 2013 with a robust balance sheet. This will enable the company to take this aggressive growth spending path without much fear of a credit rating downgrade. Just in case, the CEO also mentioned that are looking to scale back on the Voyageur project.

Conclusion

Halliburton and Suncor are two well-run companies despite the headwinds. The former trades at a respective 15.4x and 10.8x past and forward earnings versus corresponding figures of 17.8x and 9.5x for the latter. While I recommend buying both, I also recommend hedging with a stabler producer, like ConocoPhillips (NYSE:COP). This mammoth of an oil & gas company trades even cheaper than both at 9.7x past earnings while paying out a terrific dividend yield of 4.6%. The beta also isn’t too bad at 1.1. Thus, while Halliburton and Suncor could provide some growth momentum, Conoco will pass on a consistent stream of income and stability.

The article 2 Energy Stocks to Buy Despite Headwinds originally appeared on Fool.com and is written by David Gould.

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