P/E: 12
EPS growth: 22%
Most investors broke up with Canadian Natural Resources last year, sending shares down more than 15%, but it might be time to consider making up.
The Canadian oil and gas giant's Horizon oil sands operation in Alberta is up and running again, after being closed for seven months in 2011 following a devastating fire, and the stock is poised to rebound strongly in 2012, say Morningstar analysts. They're targeting the stock at $52, up almost 40% from its current price.
In addition to restoring normal operations, Canadian Natural is expanding its Horizon project, hoping to eventually more than double production to 250,000 barrels a day, say analysts.
The company will also continue raking in revenue from its other oil and gas businesses. Canadian Natural is one of the largest heavy oil producers in the region, and expects volumes to rise by 16% in 2012. Heavy oil is denser oil that requires more processing than light crude but both are used for similar fuel and energy products. Canadian National's natural gas and light oil production is poised to jump 17% this year.
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