Oil & Gas Stocks: Still good investments?
The numbers seem to say so. According to an article in today's Wall Street Journal:
Share prices in oil companies have soared this year on the back of higher oil prices, with the Dow Jones World Integrated Oil Index up 40% from a year ago. Still, these stocks aren't overpriced compared with their peers in other industries. The world's largest oil companies had a price-to-earnings ratio below 14, while the Dow Jones Industrial Average has a P/E ratio of 18.3.
It appears that the major oil companies are making up in margins what they're losing in volume as significant production and refinery runs continue to be shut in following Katrina. However, one must wonder just how much hammering their GOM investments can take before the market starts to write down their future prospects. With another hurricane apparently heading that way, I suppose we'll find out all too quickly.
Observations from a decidedly ordinary perspective - emanating from the flatlands of west Texas
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About the publisher
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More Invaders
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Book Review: "The Year of Living Biblically"
Sometimes, you get lucky...
June Sunset
It's Official...
Google's new favicon rocks the design world
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The Incredible Shrinking Math Skills
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