Cut Your Oil & Gas Risk With These Three

Article Excerpt

It pays to include some oil and natural gas stocks in your portfolio, as an inflation hedge and for exposure to the Resources sector. Even so, we still advise against over-indulging in oil and gas stocks. Global demand for oil and gas will continue to rise. But no one can consistently predict oil and gas price prices. Both will continue to go through wild swings in price. So you’ll profit most with highquality stocks that will prosper even during the inevitable price setbacks. These three energy stocks are down from their peaks over the last couple of months, but are still up from the start of this year. Although all are attractive in relation to earnings and cash flow, only two are buys right now. CHEVRON CORP. $87 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.1 billion; Market cap: $182.7 billion; WSSF Rating: Above average) is the second-largest integrated oil company in the United States after ExxonMobil. Operations include…