May 25, 2021
Markets have been turbulent over the last month but overall 2021 couldn’t be going much better. However, energy funds have not gotten the media’s attention, but things should change. Energy stocks make up only 2.85% of the S&P capitalization down from 6.95% two decades ago, but since the oil crisis at the onset of the pandemic, they have performed well. It is the leading sector in the S&P since 2021 but still lags from 2019 and 2015 peaks, meaning there is room to grow. If one looks at a forward price to earnings it may not look great for energy stocks, but instead, look at Wall Street consensus expected earnings growth, where energy leads the bunch. Staple names like ConocoPhillips and Phillips 66 are included, but big buy ratings for Green Plains Inc., Bonanza Creek Energy Inc., and Climarex Energy Co., which have the highest 12-month potential upside.
(Houston)
FINSUM + Magnifi: Traditional energy demand will be high this summer and the sector could look to find itself back in the position it was in 2015.
Other news today: Big Moves in Biotech and Treasury Tackles Bitcoin
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