There are many quality investment options among the broader Zacks Oils & Energy sector and two companies that stand out for their attractive stock price and valuation are BP (BP) and Halliburton (HAL).

Let’s see if it’s time to buy these attractively valued Oils & Energy companies following their Q4 reports.

BP Q4 Review

BP reported its fourth-quarter earnings on Tuesday with investors applauding the company for announcing a more conscious effort to focus on oil production rather than alternative energy during the quarterly release which caused BP shares to spike.

The announcement comes at a crucial time with crude oil prices remaining high and many analysts see the possibility of $100 a barrel by the summer. The increased concentration on oil production and less expansion into renewable energy could help BP strengthen its bottom line, as the company reported Q4 earnings of $1.59 per share missing estimates by -3.64% despite beating top-line expectations by 18.24% with sales at $70.35 billion.

Still, BP recorded a record year in profitability in fiscal year 2022 at $27.7 billion topping its previous high of $26.3 billion in 2008 and doubling last year’s profits of $12.8 billion.

Image Source: Zacks Investment Research

Halliburton Q4 Review

Pivoting to Halliburton, the oilfield service provider reported its Q4 earnings a few weeks ago on January 24, and was able to beat top and bottom line expectations. Halliburton posted fourth-quarter earnings of $0.72 per share topping estimates by 7.46% with sales at $5.58 billion registering a 2.57% surprise.

Halliburton also wrapped up a standout year, with its total revenue coming in at $20.3 billion, increasing 33% year over year, and operating income increasing 50% YoY to $2.7 billion.

Image Source: Zacks Investment Research

Performance & Valuation

Over the last year, Halliburton stock is up +19% Vs. BP’s +16% with both largely outperforming the S&P 500’s -10%. More impressive, since the rebound in oil prices over the last three years, Halliburton’s total return is a stellar +93% when including dividends to also top the benchmark and BP’s +28%.

Image Source: Zacks Investment Research

With higher crude oil prices continuing to support the growth of many companies in the broader Oils & Energy sector investors will still want to monitor the valuation of these equities

To that note, BP and Halliburton stocks do remain attractive. Trading at $38 per share, BP stock trades at just 5.6X. This is well below its decade-long high of 175.4X and a 55% discount to the median of 12.6X.