Think you’re “too late” to the bull market in oil? Think again! Naysayers will point out that crude oil futures fell from $118 a barrel in March to as low as $70 a few weeks ago. That’s a 40% drop. And the Johnny-come-latelys will say it’s a sign that oil lost its tailwind. But I know better… Oil is simply catching its breath after a monster rally. And that’s a gift to you and me. It’s setting up for another monster rally … which I project could add at least another $100 a barrel to the price of crude in 2023 alone. And that’ll be just the start. One of the great things about catching a brand-new bull market early — whether it be in the broader stock market or in a specific sector — is that you get multiple opportunities to act on it. You get a lot of “at bats,” to use a baseball analogy. In the early innings, you get to swing at fat pitches that no one else even sees coming.These opportunities come well before anyone has even called it a “new” bull market. Frankly, I started seeing these fat pitches in the oil and gas sector in 2020 … shortly after pundits began calling oil “dead.” Here’s how I knew to bet on oil way back then, even when everyone else thought it was toxic
Always Question the Narrative
One thing I’ve learned over the years is that when the popular “narrative” around a market and the price of that market are not moving in the same direction … you should believe the price, not the narrative. Everyone who shouted “oil is dead” in 2020 was ass-backwards wrong. Pundits called the COVID-19 pandemic the “final nail” in oil’s coffin. Some analysts claimed crude oil would never trade north of $40 a barrel again. That’s why when oil broke out above $40 in November 2020 after a five-month pullback… I knew it was “game on” for a new bull market in oil. And I started taking big swings at oil-and-gas sector trades. In my Max Profit Alert service, I recommended a bullish play on one of the biggest oil stocks in America … Marathon Oil Corp. (NYSE: MRO). You could say I was testing the waters with a well-known oil major. We got into that trade a couple weeks after Thanksgiving 2020. And by May of 2021, we took our final profits of 213%. In January of 2021, I recommended another bullish play — this time on a diversified oil-and-gas services fund, the SPDR S&P Oil & Gas Equipment & Services ETF (NYSE: XES). We doubled our money on that less than two months later!Then, between February and October 2021, I recommended another three bullish trades on DBC (a commodity fund), XLB (a materials sector ETF) and XLE (an energy sector fund). Each would benefit from crude’s rally from $35 to $70 over those eight months. (Yes, oil didn’t just break $40 … it doubled.) On those trades alone, we locked in profits of 40%, 44%, 53%, 70%, 100% and 173%. Not only did those winning trades put nice profits into the pockets of my subscribers, they were a clear sign that a new bull market in oil was underway.
We Didn’t Stop at Just 173%…
So in December 2021, just after crude prices had dipped from $70 to $48 … I recommended yet another bullish oil-and-gas play.the best way to play oil’s next rally. I got my subscribers into that trade on December 7, 2021. We locked in profits of 61% … 100% … and 502% in just three months. Now, after seeing a 500%-plus profit so quickly … you may have guessed that my Max Profit Alert service, where I recommended these bullish oil trades in 2020 and 2021 … is an options-trading service. And you’re correct — it is! Of course, options give you more bang for your buck, so the short-term gains can be massive. But that’s the thing with catching a “new” bull market early: You can use options to boost your profits … but you don’t have to. New bull markets typically start in sectors that are so beaten down, they become…
This time my system and I identified Chevron Corp. (NYSE: CVX) asA Value Investor’s Dream
Because these beaten-down stocks trade at such cheap valuations, you can make 100%-plus profits simply by buying shares of stock. No options necessary. I’ll show you an example… In March 2021, I recommended my Green Zone Fortunes subscribers buy shares of a Colorado-based company that produces crude oil and natural gas … Civitas Resources Inc. (NYSE: CIVI). My Stock Power Ratings system gave the stock a 99 out of 100 on the “value” factor. That means this oil stock was cheaper than 99% of the 8,000 stocks my system rates every day. I also detailed how CIVI rated well on the “growth” factor (87 out of 100) and the “quality” factor (83 out of 100). Since CIVI was high-quality, fast-growing and dirt cheap… And perfectly positioned in the new bull market in oil… I knew we’d have a bigger winner on our hands before too long. And sure enough, we did. It took a little time for the stock’s momentum to improve from its relatively low rating of 44. But once it did, CIVI shares began to power ahead of the market … and by May 2022, I was able to recommend my readers lock in some profits for 122%. What I told my subscribers when we first bought CIVI is exactly what I’ve shared with you today:
Of course, this wasn’t the first time my system helped me identify a dirt-cheap “value” opportunity that was primed to quickly soar. In early 2020, before the new bull market in oil had really gotten underway… My Stock Power Ratings system picked up on a super “value” opportunity in the renewable energy space. In July, I showed my Green Zone Fortunes readers how a solar systems provider called Canadian Solar (Nasdaq: CSIQ) was ranked 93 out of 100 overall. It had strong ratings on “growth” (96 out of 100), “momentum” (73 out of 100) and, surprisingly, on “value” as well (93 out of 100). Not only were CSIQ shares priced cheaper than 93% out all 8,000 stocks I rate … they were the absolutle cheapest among the 14 or so publicly traded solar companies. I shared this table with my readers, showing just how cheap CSIQ was compared to its peers:
We were able to buy into this fast-growing, strong-momentum stock at a dirt-cheap valuation … and I knew we’d have a great opportunity to make big gains fast.they came even faster than I expected! By December that year — just five months into our trade — I recommended my readers lock in some profits at 125%. Friends, those are the types of profits you can make when you identify a stock that’s firing on all cylinders! When you find a stock that rates strongly on “momentum” and “growth,” as well as “quality” and “value” … that’s when you have the recipe for a very lucrative trade! More so, when you combine top-rated stocks with a brand-new bull market, like the one we’re starting to see in the oil-and-gas energy sector … making a 100% gain in a handful of months is just the beginning. And that’s why I’ve beenbeating the drum on oil-and-gas stocks as we head into 2023. Remember, crude oil prices are down 40% from their highs in March this year. A lot of people have already given up on oil … again. Meanwhile, oil-and-gas exploration companies — like Marathon, Chevron and Civitas Resources — continue to absolutely rake it in! Their production costs are well below oil’s current market price. Just imagine how much cash flow these oil producers will make on a $100-per-barrel increase in 2023. And if you’ve seen my Oil Super Bull presentation … you’ll know that’s the low end of my ultimate target for oil! You also know about my top oil play for 2023 … and why it’s still not too late to get in.
We did … andMy Top Oil Play … Impressive Value Meets Peak Momentum
My No. 1 oil stock for 2023 generated $1.1 billion operating cash flow over the past 12 months. That’s massive, considering it’s only a $4 billion company — nearly 1% the size of Chevron!The best part? You still have time to get in! I estimate the new bull market in oil is just getting started. And as for my No. 1 oil stock … it still trades at a dirt-cheap valuation … at a P/E ratio that’s half of Chevron’s. It has strong ratings on “growth” (81 out of 100) … “value” (85) … “quality” (92) … and “momentum” (97). That’s why I believe this stock could easily soar by 100% or more in just the next 100 days. And really, that type of move would give us a fantastic “short-term” gain, by anyone’s standards. But I believe that’ll prove to be just the beginning of an even more massive, multi-year rally in certain oil-and-gas stocks (and some renewable energy stocks, too). But only for those investors who know where and how to find them… If you didn’t make it to my Oil Super Bull Summit on Wednesday, December 28, don’t worry: My team and I arranged for you to catch a replay of the event. That means you can still get all the details on my No. 1 stock for oil’s super bull market.Click here to watch the video now. To good profits,Adam O’Dell Chief Investment Strategist, Money & Markets
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