2024-04-01 08:55:42 ET
Summary
- The Energy Sector appears attractively valued, and many top companies in the largest fund, XLE, are currently trading below our estimated Fair Value ranges.
- Despite this, bottom-up momentum appears broad, and the sector could be on the verge of an ascending-triangle breakout towards all-time highs.
- We think that buying the potential breakout above $94.72, and using a trailing monthly stop loss, may be the key to maximizing potential returns.
- We reiterate our 'Buy' rating on XLE.
We first covered the Energy Sector ( XLE ) in an article at the end of last October, following the blockbuster acquisitions of PXD and HES by Exxon ( XOM ) and Chevron ( CVX ) respectively.
At that point in time, our focus was on how these major transactions could be viewed as bellwethers of improving financial health and value in the industry....
Read the full article on Seeking Alpha
For further details see:
The Energy Sector Looks Ready To Break Out Towards All-Time Highs