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Citi Research strategists rate the energy sector (NYSEARCA:XLE) as market weight with valuation not as attractive as one quarter ago, according to a U.S. Equity Strategy report.
In addition, earnings growth expectations have fallen but tend to lag the commodity price action, said Strategist Scott Chronert.
“Thus, we expect 2024 growth expectations to move higher from here,” he said.
Here are the top buy-rated stocks in Energy (XLE), ranked by their expected total return (or ETR):
- Patterson-UTI Energy Inc. (PTEN) - ETR: 44%
- NOV Inc. (NOV) - ETR: 32%
- Schlumberger (SLB) - ETR: 30%
- Baker Hughes Co. (BKR) - ETR: 26%
- Valaris Ltd. (VAL) - ETR: 26%
- Talos Energy Inc. (TALO) - ETR: 21%
- Nabors Industries Ltd. (NBR) - ETR: 19%
- Vital Energy Inc. (VTLE) - ETR: 18%
These are the sell-rated stocks in Energy:
- Magnolia Oil & Gas Corp. (MGY) - ETR: -28%
- Core Laboratories Inc. (CLB) - ETR: -17%
- RPC Inc. (RES) - ETR: -10%
More on Energy Select Sector SPDR ETF:
- The Energy Sector Looks Ready To Break Out Towards All-Time Highs
- MLPX Vs. XLE: Which Of These Energy ETFs Is Best?
- XLE: Surging Oil And Gasoline May Send The Energy Sector To New Highs
- Crude oil pushes higher on global tensions, signs of strong U.S. gasoline demand
- Energy tops S&P sectors as supply threats push crude oil to five-month high