With second-quarter earnings season drawing to a close, we revisit the valuation models for the three buy-rated oil and gas royalty trusts in the Growth Portfolio and review the solid performance of EOG Resources (NYSE: EOG) and Oasis Petroleum (NYSE: OAS), two of our top bets on shale oil.

Our strategy regarding these names remains the same: Investors will come out ahead by buying these stocks during the growth scares that inevitably occur in a period of middling economic expansion and taking profits when elevated commodity prices lead to a temporary retrenchment.

Between the upcoming presidential election and disappointing economic data from Europe and China, uncertainty remains the only certainty in the stock market. In this environment, investors must remain nimble and pay close attention to valuations to avoid overpaying for stocks.

This approach doesn’t necessarily entail more frequent trading: Buy-and-hold investors must simply time their entries appropriately. To that end, readers should pay close attention to my Best Buys List, which highlights the Portfolio holdings that are my top picks in the current market environment.

In This Issue

The Stories

1. Here’s our take on quarterly results from the three buy-rated oil and gas royalty trusts in our model Portfolios. See Loyalty to Royalty Trusts: Valuation Refresh.

2. Investors should buy our favorite bets on shale oil on any sign of weakness. See Excellence in Execution.

The Stocks

SandRidge Permian Trust (NYSE: PER)–Buy<24 in Growth Portfolio
SandRidge Mississippian Trust II (NYSE: SDR)–Buy < 24.50 in Growth Portfolio
Chesapeake Granite Wash Trust (NYSE: CHKR)–Buy < 22 in Growth Portfolio
EOG Resources (NYSE: EOG)–Buy < 125 in Growth Portfolio
Oasis Petroleum (NYSE: OAS)–Buy < 38 in Aggressive Portfolio