Hess' shares continue to meander

Posted Aug 18th 2009 4:50PM by Joseph Lazzaro
Filed under: Stocks to Buy

It's a difficult call, but I'm Reiterating my Buy rating for Hess Corp. (NYSE: HES), first recommended on April 22, 2009 at a price of $50.41.

Hess' shares have underperformed over the past half-year, but I'm sticking with the play, for now, pending results over the next two quarters.

Hess is vulnerable if U.S. gasoline demand does not pick-up in the second half of Q2, but with 'green shoots' in the U.S. economy surfacing, the risk/return is favorable for investors who can tolerate moderate risk. The First Call FY2009/FY2010 EPS estimates for HES are $1.25 to $3.45.

Stock Analysis: Hess is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in HES now. Under any circumstance, don't buy more than 25% of your HES position before October 2009. Sell/Stop Loss if you were to buy shares in this company: $32.

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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Tags: energy, HES, Hess Corp., oil, refining