The best time for value investors to buy cheap is when stocks are down. The price of oil has recently dropped by a few dollars per barrel as investors have become more concerned about global growth. Signs of a soft patch in the U.S. economy have appeared, much of Europe remains in a recession (if not worse), and China is also seeing slower growth. This has caused many commodities like copper, iron ore and oil to decline. However, we have seen these concerns before in the past couple of years, and it was never too long before oil spiked higher for one reason or another.
The picks below fit this profile as analysts expect these stocks to double in value. Here are the two stocks that appear cheap after a recent pullback, and could also be poised to double: Warren Resources, Inc. (WRES) and Key Energy Services, Inc. (KEG).
Source: Seeking Alpha
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