If you didn’t buy oil stocks a while back, you may be thinking that the industry is too overvalued to get in now. While the industry is overvalued, Dan Gallagher at CBS MarketWatch argues that there are some reasonably priced oil stocks left. These include large caps like Royal Dutch/Shell Group’s component stocks, BP, and ChevronTexaco. Then there are independent refiners like Devon Energy Corp., Anadarko Petroleum Corp., Apache Corp., and Burlington Resources Inc.
I should note that these stocks are considered by the author to be reasonable compared to the other stocks in the oil sector, but they are not touted as bargains compared to other sectors.