Although oil continues to take a pounding, trading below $58 a barrel, natural gas has bounced strongly over the past week, up 6% today alone. A number of leading newsletter advisors have been adding natural gas-related stocks to their buy lists in anticipation of a rebound.
The key signal for Adrian Day, editor of The Global Analyst, occurred last week when he saw select natural gas stocks hold up even while gas prices continued to slide. Seeing this divergence, he told his subscribers, "It's now time to buy."
His top pick in the sector is EOG Resources (NYSE: EOG), one of the largest independent gas exploration and production firm in North America. He considers the stock cheap at 10 times earnings and 6 times cash flow.
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