Now could be a good time buy beaten up energy stocks
— -- Q: With oil prices at their lowest level in years, what are some beaten down oil stocks that have the most room to rise if oil rebounds?
A: Just six months ago, it seemed there was no ceiling for the price of oil.
Drivers were gagging on $4-a-gallon gasoline and companies were slapping fuel surcharges on their goods and services.
How things have changed. In the last half of 2008, the price of a barrel of crude oil tanked nearly 54% in a breathtaking decline that few pundits saw coming. The popping of the oil bubble has pushed gasoline prices to below $2 a gallon in most areas.
With that said, it's often a good time to consider buying stocks when they are out of favor. If you're interested in energy stocks, you might consider the Vanguard Energy ETF. With the annual expense ratio of 0.25%, in one stock you get exposure to 171 energy companies that stand to benefit if energy prices rise, as you suspect.
Otherwise, based on your question, it sounds like you're looking for energy stocks that have fallen the most. To help you, I've generated a list of the worst-performing energy stocks in the Standard & Poor's 1500 index. Check it out at left.
Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Click here to see previous Ask Matt columns.
