The large-cap, big name stocks are all you hear about in the media. You know the names… Apple (APPL), Google (GOOG), and Caterpillar (CAT) are just a few. After listening to the hype, you’re probably salivating to buy some of these big name stocks.
However, $600, $500 and even $120 stocks are just out of most investors reach…
If you can’t justify paying the big price tag, not to worry… we have a small-cap penny stock alternative you can buy instead. Not only will it cost less, you’ll be able to buy more shares and juice your profit when great earnings hit the wires!
This week, we’ve found a great alternative to Exxon Mobile (XOM).
There’s no doubt the energy sector has been under pressure lately. In fact, companies in the major oil and gas industry are up by just 6.0% this year. That’s lagging the major averages right now, which are all up by double digits.
What’s more, oil and gas is lagging most other industries this year. For example, the personal computer industry is up 45% year-to-date!
When looking at oil and gas producers, many investors watch the mega-cap giant, Exxon Mobile. And while the industry remains suppress, XOM shares are a great buy at $85.33. With a P/E of just 10.1x, Exxon shares are currently trading at a discount to the industry… which has a P/E of 11.5x.
The problem is, even at this discount, XOM shares are still pricy costing over $85 a piece.
If you’re looking for a less expensive option in the oil and gas industry, take a look at shares of Blue Dolphin Energy (BDCO)…
This Houston-based independent oil and gas company is involved in the exploration, production and transportation of oil and natural gas. Recently, BDCO executed a share exchange with Lazarus Energy (LEH). In the process, LEH acquired 80% of BDCO shares, giving Lazarus control of both companies.
But not to worry…
The deal makes BCDO shares attractive at their current price of $7.29. What’s more, Blue Dolphin has a P/E of just 9.9x… giving them a better valuation than XOM.
If you want invest in a low-priced, high value oil and gas company, then pick up shares of BDCO.
Keeping you one step ahead,