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Jim Cramer’s Most Undervalued Energy Stock Picks

Jim Cramer has been talking a lot about energy stocks on his Mad Money show lately, but he summed it up best on Monday night when he said, “When’s it going to crash already? I’m talking about oil. Isn’t that the most salient question out there? Even after today’s run, the valuations for the oil stocks, from the drillers to the integrators, to the independents, are signaling that there’s going to be a monumental collapse in oil… of cataclysmic proportions.” Cramer’s solution is to invest in areas that are currently undervalued, like energy companies. Here is a list of six energy companies Jim Cramer recommended in the last four weeks:

Jim Cramer

American Electric Power (AEP): Cramer is very bullish about this stock. He recommended it on his 9/28, 9/30 and 10/05 shows. AEP is currently trading at $38.21 a share. It offers a dividend yield of 4.80%. AEP has a market cap of $18.43 billion and a 12.78 P/E ratio. AEP is up 10.60% YTD. AEP is popular with John A. Levin of Levin Capital Strategies. His fund has a $65 million stake in the company.

Dominion Resources (D): Cramer recommended on 10/07. Dominion recently traded at $50.17, near the upper end of its 52 week range. It is up 22.17% YTD. It offers a 3.80% dividend. Dominion’s market cap is $28.56 billion and a 17.32 P/E ratio. During the second quarter, Phill Gross and Robert Atchinson bought a new $39.7 million stake for their fund Adage Capital Management.

Duke Energy (DUK): Cramer recommended this stock on 9/30. DUK is up 16.48% on the year, most recently trading at $19.80, near its 52 week high of $20.26 a share. It offers a 4.90% dividend yield. DUK has a $26.37 billion market cap and a P/E ratio of 12.87. Michael Messner is a fan of DUK. He has more than 2% of his fund Seminole Capital invested in the company after increasing his position in the company by 97% in the second quarter.

FirstEnergy (FE): Cramer is exceptionally bullish about this stock. He recommended it on 10/03, 10/05, and 10/07, and no wonder. The stock is up more than 26% on the year and offers a 4.90% dividend yield. FE has a market cap of $18.84 billion and a P/E ratio of 25.83. Jean-Marie Eveillard has $498.7 million of his First Eagle Investment Management fund invested in FE. He is so confident about the company, he even increased his already sizable position in the company during the second quarter.

NRG Energy (NRG): Cramer recommended NRG a few weeks ago on 9/20. The stock has returned 6.35% YTD. It is currently trading at $20.99 a share. It has a market cap of $5.06 billion and a P/E ratio of 9.35. John Griffin has $212.8 million of his Blue Ridge Capital invested in NRG.

Xcel Energy (XEL): Cramer recommended XEL on 9/21. It has returned 7.98% YTD and offers a 4.20% dividend yield. The stock has a market cap of $11.96 billion and a P/E ratio of 14.57. John A. Levin is bullish about this stock, as is Israel Englander. Englander has $11.9 million of his Millennium Management fund invested in XEL.

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