No. 1 on traders’ 2015 buy list? Energy stocks

Published Mon, Jan 5 20156:23 AM ESTUpdated Mon, Jan 5 201510:24 AM EST

Banking on the familiar Wall Street adage 'buy low and sell high' a few Halftime Traders are looking to take advantage of the recent rout in energy stocks — piling into the names that have fallen as much as 60 percent from their 52-week highs. Energy was the most common sector represented in the picks for the Halftime Report Portfolio , a new premium feature for CNBC.com which will track the picks of the traders from the show 24/7, throughout 2015. "It's go big or go home and I'm playing with high beta picks," said Jon Najarian co-Founder of optionMonster, adding, "it's beaten down and you always need it." Energy began 2014 with a strong start—outperforming the broader S & P in the first six months of last year. But since oil prices began plummeting in late fall it's been nothing short of a shellacking. The SPDR XLE —the exchange traded fund which tracks the sector—ended the year down 9.7 percent. But that's why the traders say they are finding deals. Jim Lebenthal, CIO of Lebenthal Asset Management, thinks one of his picks, U.S. oil refiner Marathon Petroleum , is getting unfairly punished in the broader sell-off. "This baby got thrown out with the bathwater," said Lebenthal. Adding, "The stock reaction is way overblown...demand is strong and we're looking for good earnings growth in 2015." Meanwhile Najarian is looking at an even harder hit name, offshore driller Transocean . The stock fell more than 60 percent in the fourth quarter, hitting a 52-week low of just under $19 a share. But this trader thinks a bottom is near now that 2014 is over. "Tax-loss selling contributed to why it's so weak. As soon as that selling pressure is off, the stock will lift." Najarian also thinks Transocean's strong market position is a reason to own the stock. "It's the leading international provider of offshore contract drilling services for energy companies, owning and operating 73 mobile offshore drilling units, including the world's largest fleet of high-specification rigs." The Halftime Portfolio is a stock-picking competition between six of the show's regular contributors. Each trader is given a starting balance of $100,000 and is able to make one trade per week. For all the picks from the traders, see http://www.cnbc.com/halftime-portfolio .

Pumpjacks pump petroleum from the ground.

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Energy was the most common sector represented in the picks for the Halftime Report Portfolio, a new premium feature for CNBC.com which will track the picks of the traders from the show 24/7, throughout 2015.