Four energy bargains below 10x earnings as U.S.-Iran war lifts crude

2026-03-03 16:01:33 ET

Energy stocks have led market gains over the past few days as the U.S.-Israel-Iran conflict intensifies, with crude oil prices surging over 9% to near $80/barrel on fears of supply chokepoints like the Strait of Hormuz and potential strikes on Iranian oil facilities or Saudi infrastructure....

The Energy Select Sector SPDR ETF ( XLE ) has jumped sharply, reflecting broad strength across integrated majors.

Amid the rally, value hunters are zeroing in on a handful of energy-related stocks trading at deeply depressed price-to-earnings (P/E) multiples below 10, which is a threshold often signaling undervaluation relative to historical norms and peers.

Standouts include Edison International ( EIX ) (P/E 6.44), AES Corporation ( AES ) (9.38), Ferrellgas Partners ( FGPR ) (2.63), and Star Group L.P. ( SGU ) (6.80), which screen as bargains despite the sector's momentum. A P/E below 10 means the stock trades at less than 10 times its annual earnings per share, a fundamental metric prized by value investors as it implies a modest price tag for each dollar of profits generated.

Whether these low-P/E names represent true opportunities or traps in a volatile war-driven market depends on sustained oil prices and broader economic fallout.

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