Top Earnings Growers in the S&P 500 Energy Sector
Fastest Earnings Growers in the S&P 500 Energy Sector
Nearly half the companies in the S&P 500 energy sector are expected to achieve double-digit annual earnings growth.
Updated: ConocoPhillips announced its acquisition of Marathon Oil Corp. on Wednesday.
Energy stocks are currently undervalued relative to expected earnings, even though the sector has been the best performer in the S&P 500 over the past three years.
Last month, we examined all 23 stocks in the S&P 500 energy sector for their returns on invested capital over the previous three years. With Exxon Mobil's recent acquisition of Pioneer Natural Resources on May 3, the sector now comprises 22 stocks. Further consolidation is underway, with ConocoPhillips agreeing to acquire Marathon Oil Corp., and Hess Corp. set to be acquired by Chevron Corp. in a $53 billion deal.
Sector Valuations and Growth Rates
The energy sector remains the least expensive of the 11 S&P 500 sectors, despite its high three-year total return. However, it has the worst 10-year return, reflecting the oil price crash from mid-2014 to early 2016 and investor reluctance to re-engage with the sector.
Chip Stocks Dominate S&P 500 for the First Time
Chip stocks have surpassed software stocks to hold the largest sector weighting in the S&P 500, reflecting optimism about the semiconductor sector's financial prospects due to artificial intelligence advancements and concerns over budget pressures in the software industry.
Strategas strategist Todd Sohn noted that the chip sector's 11% weight in the S&P 500 marked a new high, up from just 2% in early 2014. The combined weight of the top five sectors reached 27%, the highest in 44 years of data.
Conversely, the software sector faces challenges, with Mizuho analyst Jordan Klein highlighting delayed deals and cautious spending due to the macroeconomic climate. Salesforce Inc. exemplified these issues, with its stock plummeting after management reduced its forecast and discussed budget scrutiny.
Technically analyse:
Nearly half the companies in the S&P 500 energy sector are expected to achieve double-digit annual earnings growth.
Updated: ConocoPhillips announced its acquisition of Marathon Oil Corp. on Wednesday.
Energy stocks are currently undervalued relative to expected earnings, even though the sector has been the best performer in the S&P 500 over the past three years.
Last month, we examined all 23 stocks in the S&P 500 energy sector for their returns on invested capital over the previous three years. With Exxon Mobil's recent acquisition of Pioneer Natural Resources on May 3, the sector now comprises 22 stocks. Further consolidation is underway, with ConocoPhillips agreeing to acquire Marathon Oil Corp., and Hess Corp. set to be acquired by Chevron Corp. in a $53 billion deal.
Sector Valuations and Growth Rates
The energy sector remains the least expensive of the 11 S&P 500 sectors, despite its high three-year total return. However, it has the worst 10-year return, reflecting the oil price crash from mid-2014 to early 2016 and investor reluctance to re-engage with the sector.
Chip Stocks Dominate S&P 500 for the First Time
Chip stocks have surpassed software stocks to hold the largest sector weighting in the S&P 500, reflecting optimism about the semiconductor sector's financial prospects due to artificial intelligence advancements and concerns over budget pressures in the software industry.
Strategas strategist Todd Sohn noted that the chip sector's 11% weight in the S&P 500 marked a new high, up from just 2% in early 2014. The combined weight of the top five sectors reached 27%, the highest in 44 years of data.
Conversely, the software sector faces challenges, with Mizuho analyst Jordan Klein highlighting delayed deals and cautious spending due to the macroeconomic climate. Salesforce Inc. exemplified these issues, with its stock plummeting after management reduced its forecast and discussed budget scrutiny.
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