3 Top Energy Stocks to Buy in February
As easy as it sounds, it is quite difficult to follow the 'buy low, sell high' idea. It's tough to go against the collective wisdom of investors who don't like a sector or stock. This is the case with energy stocks currently, which are down now for more than a couple of years. The sustained weakness in energy stock prices has understandably frustrated even the most optimistic investors.
However, as oil and gas supply and demand come in sync, companies deliver consistently in the new environment, and the sector comes out of the current price cycle, investors' interest in the sector should rise. Admittedly, this isn't happening soon. On the contrary, effects of coronavirus and warmer weather are expected to negatively impact oil demand in the first quarter of 2020. Not a good news for oil companies which already posted dismal fourth-quarter performance. The negative near-term outlook has pressured energy stocks further, making them more attractive. Savvy investors who recognize this opportunity should eventually be rewarded.
In such a scenario, it is important to select the best performers, which can grow irrespective of oil prices. Three energy stocks -- ExxonMobil (NYSE: XOM), ConocoPhillips (NYSE: COP), and Enbridge (NYSE: ENB) -- are among the best to take advantage of the current disconnect between the company's fundamentals and its stock price. Each of these stocks offer attractive yields, so you are not just simply waiting for improved industry fundamentals to get your returns.
Source Fool.com
