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“Obviously some of these retailers are going to take it on the chin,” said Drakon Capital’s Guy Adami.
Costco’s strength made it attractive, but trading at 20 times forward earnings, Adami said he would wait for a pull-back to buy.
Instead, he liked Nabors, whose stock price took a beating in recent weeks and represented a better value.
Brian Kelly of Shelter Harbor Capital noted stats from Casey’s General Stores, which recently reported gas sales down 1.7 percent while food sales rose 6 percent.
“I would look for that trend to reverse as people basically spend more on gas and they buy less Slim Jims at Casey’s General Store when they go in there,” he said.
Deutsche Bank energy analyst Paul Sankey said the issue was broader than Iran, with supply threats in Syria, Somalia and Yemen. But he also noted that the U.S. economy was growing despite falling demand.
The Middle East and Russia will initially benefit from high oil prices, while China and other emerging market economies could be hurt because of their reliance on energy, he said.
As far as oil companies, Sankey liked Marathon, Occidental, SM Energy and ConocoPhillips — but with a caveat.
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