Top Undervalued Stocks To Own For 2018


Last week’s earnings announcement by Total SA (NYSE:TOT) served notice to the markets that the company will be on the offensive going forward.

The company beat earnings on the top and bottom lines by a wide margin, earning $.96 a share on Revenues of $42.3B, beating street estimates by 8%. It also increased its dividend to 0.62 euros.

As I study the energy space, it appears to me that the best bang for the buck for Total SA may be buying Chesapeake Energy (NYSE:CHK) at a discount.


I recently wrote an article about BP plc (NYSE:BP) (which I believe is making a yearly low today) buying Chesapeake, but after more research, it seems Total SA would be even better served by buying this undervalued company.

One of the knocks against Total SA is its lack of US shale presence. In my view, buying up Chesapeake would instantly give Total SA the world class US shale acreage that would otherwise take years to accumulate.

Chesapeake CEO Mr. Doug Lawler recently gave a presentation at the Credit Suisse Energy Summit where he shared some valuable information about the company and its future. I encourage interested investors to click on the link above for detailed information.

Top Undervalued Stocks To Own For 2018: Frontline Ltd.(FRO)


Advisors’ Opinion:

  • [By Shanthi Rexaline]

    Frontline Ltd. (NYSE: FRO) is projected to post a loss in the second quarter, translating to a zero dividend, Credit Suisse said in a Tuesday note. Notwithstanding the negative opinion, the shares of the company were up in reaction to the possibility of a deal being struck.

  • [By Rich Smith]

    So what is it that’s supporting DHT’s stock price in the face of sliding shipping rates for crude oil, retreating revenue, and plunging profits? Well, for one thing, rival tanker companyFrontline (NYSE:FRO) made an unsolicited bid to acquire DHT last week, offering to pay $475 million for the company. (DHT is currently valued at $460 million.)

  • [By Lisa Levin]

    Wednesday afternoon, the energy shares surged 1.23 percent. Meanwhile, top gainers in the sector included Frontline Ltd. (NYSE: FRO), up 5 percent, and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO), up 6 percent.

Top Undervalued Stocks To Own For 2018: Microchip Technology Incorporated(MCHP)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Microchip Technology (MCHP) sunk to the bottom of the S&P 500 today as semiconductor stocks got clobbered.


    Getty Images

    Shares of Microchip Technology tumbled 7.5% to $61.23 today, while the S&P 500 declined 0.4% to 2,191.08. The SPDR S&P Semiconductor ETF (XSD) fell 4.8% to $52.29, while the VanEck Vectors Semiconductor ETF (SMH) dropped 4.8% to $67.68.

    Today’s slaughter comes two days after Microchip Technology narrowed its third-quarter guidance. Stifel’s Kevin Cassidy and team had the details:

    Microchip upwardly revised its December ending quarter…Non-GAAP EPS guidance was updated to $0.87 – $0.94 compared to $0.85 – $0.95 previously…The According to management, the upside is coming from better than expected integration of recent acquisitions. Management pointed out that significant gross margin improvements may be recognized as the inventory of higher cost products from the now closed Micrel fab is depleted. We have revised our revenue and non-GAAP earnings estimates and increased our 12-month target price to $70.


    Microchip Technology’s market capitalization fell to $13.2 billion from $14.3 billion yesterday. It report net income of $324 million on sales of $2.2 billion in fiscal 2016.

     

  • [By Ben Levisohn]

    My colleague Tiernan Rey at Barron’s Tech Trader Daily quoted B. Rileys Craig Ellis in a post today, who called the selloff yesterday an unusually attractive entry opportunity forApplied Materials andMicrochip Technology (MCHP) buyers.

Top Undervalued Stocks To Own For 2018: Media General, Inc.(MEG)


Advisors’ Opinion:

  • [By Monica Gerson]

    Media General Inc (NYSE: MEG) is estimated to report its quarterly earnings at $0.04 per share on revenue of $340.17 million.

    National Health Investors Inc (NYSE: NHI) is expected to post its quarterly earnings at $1.17 per share on revenue of $57.82 million.

Top Undervalued Stocks To Own For 2018: Energy Select Sector SPDR ETF (XLE)

Advisors’ Opinion:

  • [By Wayne Duggan]

    While the S&P 500 has rallied 8.9 percent in 2017, oil and energy investors have been left in the dust. The Energy Select Sector SPDR (ETF) (NYSE: XLE) is down 13.3 percent and the United States Oil Fund LP (ETF) (NYSE: USO) is down 16.8 percent on the year as WTI crude oil prices have once again dipped below $48/bbl.

  • [By WWW.KIPLINGER.COM]

    If there is one word that could sum up energy stocks and crude oil prices during the third quarter, it would be volatility. After rebounding off the lows hit during the first half of the year, energy stocks were essentially flat over the past few months with the benchmark Energy Select Sector SPDR (XLE) gaining around 2% during the quarter.

  • [By Ben Levisohn]

    Halliburton’s drop has come even as the Energy Select Sector SPDR ETF (XLE) has gained 0.7% to $68.29, and the VanEck Vectors Oil Services ETF (OIH) has risen 0.4% to $28.65.

  • [By Craig Jones]

    Joe Tigay spoke on Bloomberg Markets about his trading strategy in Energy Select Sector SPDR (ETF) (NYSE: XLE).

    He said crude oil has been trading between $50 and $55 lately and every time it drops close to $50, domestic supply decreases and the price moves higher. He believes crude oil could move higher from its current price level and he wants to set up a bullish strategy. He wants to buy Energy Select Sector SPDR (ETF) shares and sell the April $73 call for $1.40.

  • [By Ben Levisohn]

    Shares of Marathon Oil jumped 21% to $18.06, while the S&P 500 fell 0.3% to 2,198.81, and the Energy Select Sector SPDR ETF (XLE) climbed 5.1% to $74.43.

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