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MarketWatch: Wall Street's Top 10 Stock Picks for 2016 Led by Energy

MarketWatch: Wall Street's Top 10 Stock Picks for 2016 Led by Energy

By    |   Wednesday, 23 December 2015 08:15 AM

Wall Street analysts are bullish on energy stocks for 2016, shaking off the 24 percent decline in the industry this year.

Drillers dominate the list of 10 top-rated stocks for next year, according to MarketWatch columnist Philip Van Doorn.

“The favorite names continue to be centered around the beleaguered energy sector, even as the U.S. oil-drilling rig count actually increased last week,” he writes.

A year ago, energy stocks dominated the list of top recommended stocks, but no one predicted that crude prices would fall by another 40 percent.

“With hindsight, it’s obvious that the increase in U.S. shale production has changed the game,” Van Doorn says. “The Organization of the Petroleum-Exporting Countries realized this before Wall Street did, and the cartel is clearly willing to put up with a long-term price squeeze to kill off its new competition.”

Oil supplies have grown while the global economy shows signs of cooling, damping demand for raw materials.

“The global supply glut means West Texas crude has declined another 32 percent this year, through Friday, and the average U.S. gas price at the pump on Monday dropped below $2 for the first time since 2009,” according to Van Doorn.

Van Doorn’s 2016 list consists of stocks that have a “buy” rating by  two-thirds of Wall Street analysts.

Wall Street's Top-Rated Stocks for 2016
  1.     Range Resources Corp. (RRC)
  2.     NRG Energy Inc. (NRG)
  3.     Devon Energy Corp. (DVN)
  4.     Anadarko Petroleum Corp. (APC)
  5.     EQT Corp. (EQT)
  6.     Ryder System Inc. (R)
  7.     Western Digital Corp. (WDC)
  8.     Baker Hughes Inc. (BHI)
  9.     Navient Corp. (NAVI)
  10.     WestRock Co. (WRK)
“Your investment horizon may well need to be a lot longer than 12 months if you are looking to make huge gains on an energy rebound,” Van Doorn writes. “Do your own research and decide for yourself whether you have confidence in companies’ strategies to thrive during this period of weak commodity prices.”

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Wall Street analysts are bullish on energy stocks for 2016, shaking off the 24 percent decline in the industry this year.
top, stock, picks, energy
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2015-15-23
Wednesday, 23 December 2015 08:15 AM
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